Panellists warm to Treasury plan to lend TGA cash in repo
Skip to main content
Goldman’s Chambers backs the idea, while JP Morgan and BNY execs say payoff depends on repo trading above IORB
Market participants have given a cautious welcome to a US Treasury proposal to lend excess cash into the overnight Treasury repo market, arguing that it could dampen funding spikes – though they note the economics only work when repo rates trade above what the Federal Reserve pays on bank reserves.
“It makes sense from a debt sustainability standpoint to have the largest issuer in the world step in
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
Most read articles loading…
Back to Top
You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.
