Tag Archives: Repo market

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Cumberland Advisors Market Commentary – The Market Knows

Author: Robert Eisenbeis, Ph.D., Post Date: October 7, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

The Federal Reserve Bank of New York announced on Friday, Oct 4 that it would continue to offer a maximum of $75 billion in overnight repurchase agreements and at the same time offer a series of term repos through at least November 4 according to the following schedule:[1] This extension seems to be an attempt […]

Repo Market, Monetary Policy, & Liquidity Discussion – An On-Demand Webinar

Author: Cumberland Advisors, Post Date: October 5, 2019
On-Demand Webinar - How does the Repo Market, Monetary Policy, & a Liquidity crunch affect Financial Markets

In early September 2019 there was an unusual spike in rates in the repurchase (“repo”) market causing a liquidity squeeze on broker-dealers that use repos to finance their portfolios of Treasury and agency securities.  It remains a mystery as to what catalyzed the liquidity squeeze.  The response by the Federal Reserve Bank and market participants […]

Cumberland Advisors Market Commentary – Repos and Reverse Repos

Author: Robert Eisenbeis, Ph.D., Post Date: September 27, 2019
Cumberland Advisors' Robert "Bob" Eisenbeis, Ph.D.

The week of September 16 saw the Federal Reserve Bank of New York inject funds into the repo market in response to an unusual spike in rates that was above the initial target range for the federal funds rate of 2.0–2.25%. (The target rate was lowered to 1.75–2.00% after the close of the FOMC’s meeting […]