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 has created more uncertainty.
Why is this important to investors? U.S. money markets have been unnerved resulting in the Federal Reserve implementing daily interventions. It is thought by some that this has prevented repo contagion from infecting other key areas of finance, but for how long? Does our central bank need to take much grander action and put in place a long-term solution? What can we expect or even demand the Federal Open Market Committee do when it meets Oct. 29-30?
The Global Interdepedence Center (GIC) is pleased to present two financial markets veterans, Bob Eisenbeis and Chris Whalen, who will discuss what recent repo rate disruptions mean for monetary policy and market liquidity during this on-demand webinar.
Bob Eisenbeis, Vice Chairman & Chief Monetary Economist of Cumberland Advisors, was formerly Executive Vice-President and Director of Research at the Federal Reserve Bank of Atlanta, where he advised the bank’s president on monetary policy for FOMC deliberations and was in charge of basic research and policy analysis.
Chris Whalen, Chairman of Whalen Global Advisors LLC, is a member of the Economic Advisory Committee of FINRA and has testified before Congress, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation on a range of financial, economic and political issues.
Together, they will present on recent developments in the repo market and answer audience questions to close out the discussion. The discussion was moderated by Bill Kennedy, Chief Investment Officer of Fieldpoint Private and GIC Board Member.
This virtual event was conducted on Thursday, October 10th via the web and telephone dial-in. Participants may view PowerPoint presentations online while listening to the speakers and the links are available from within the GoToMeeting player or separately here:
To view this informative on-demand webinar, visit the GIC website: https://www.interdependence.org/events/browse/repo-market-virtual-event/
For more context and insight around the Repo Market, Monetary Policy, & Liquidity, read recent works written by Bob Eisenbeis and Chris Whalen linked below:
“The Market Knows” by Robert Eisenbeis, Ph.D.
“Repo Market, Liquidity & QE 4” by R. Christopher Whalen
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