SOFR (repo rates) fall, paying the same rate as the RRP. Secured lending volumes have peaked for now, partly because SOFR equaling RRP means no premium to lend to leveraged investors over the Fed
Questions, please:
1. SOFR rate is for centrally cleared repo (trading treasuries), right?
2. Non-bank bi-lateral repo for hedge funds and PR(trading alternatives) must trade at a higher rate, I assume?
3. If so, there is still an overnight premium trade available in the market, and I would assume money should flow to non-bank repo? Is this happening?
I doggedly focus on the non- bank portion of money markets, since this is where liquidity risk is highest, yet no one seems to focus much on this risk
At which point things start to gum up properly...
Hi, any idea what's the impact on our money parked in Money Mkt funds should debt ceiling talk falls thru and govt shut down? TIA
I am a newbie… trying hard to learn from your posts.
Q. if lenders have no reason to lend to investor, what happend?
Questions, please:
1. SOFR rate is for centrally cleared repo (trading treasuries), right?
2. Non-bank bi-lateral repo for hedge funds and PR(trading alternatives) must trade at a higher rate, I assume?
3. If so, there is still an overnight premium trade available in the market, and I would assume money should flow to non-bank repo? Is this happening?
I doggedly focus on the non- bank portion of money markets, since this is where liquidity risk is highest, yet no one seems to focus much on this risk
At which point things start to gum up properly...
Hi, any idea what's the impact on our money parked in Money Mkt funds should debt ceiling talk falls thru and govt shut down? TIA
I am a newbie… trying hard to learn from your posts.
Q. if lenders have no reason to lend to investor, what happend?