{"id":34713,"date":"2023-11-02T13:09:49","date_gmt":"2023-11-02T20:09:49","guid":{"rendered":"https:\/\/www.itmtrading.com\/blog\/?p=34713"},"modified":"2023-11-02T13:09:49","modified_gmt":"2023-11-02T20:09:49","slug":"reverse-repo-meltdown-will-the-feds-safety-net-collapse","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/reverse-repo-meltdown-will-the-feds-safety-net-collapse\/","title":{"rendered":"Reverse Repo Meltdown: Will the Fed&#8217;s Safety Net Collapse?"},"content":{"rendered":"<p>Have you ever wondered about the &#8216;Too Big to Fail&#8217; entities and how they&#8217;ve shaped our financial world since 2008? Well, we&#8217;ve got the answers you&#8217;ve been looking for, and you might be surprised to find out it&#8217;s not just about you and me!<\/p>\n<p>&#x1f4ca; Today, we&#8217;re diving deep into the intriguing world of the repo market. But what is a &#8216;repo,&#8217; and why should you care about it? Let&#8217;s break it down. &#8216;Repo&#8217; is short for &#8216;repurchase agreement,&#8217; and it&#8217;s a fascinating financial concept. Here&#8217;s how it works: the government issues treasuries, then sells them to private parties, with a promise to buy them back with a bit of interest at a specified time and day.<\/p>\n<p>&#x1f92f; Join us as we unravel the complexities of the repo market and its significance in today&#8217;s financial landscape. You won&#8217;t want to miss this! Get ready to gain a whole new perspective on the financial world.&#x1f4b0;&#x1f4c8;<\/p>\n<p><strong>CHAPTERS: <\/strong><\/p>\n<p>0:00 Limited Choices<br \/>\n1:26 What is the Repo Market?<br \/>\n1:56 Reverse Repo<br \/>\n7:28 Treasury Bill Appetite<br \/>\n11:50 Money Market Repurchase Agreements<br \/>\n14:56 The Plumbing Of The Global Financial System<br \/>\n16:00 Are T-Bills A Safe Asset?<br \/>\n22:03 Burkina Faso<br \/>\n26:03 What are Central Banks Doing?<\/p>\n<p><strong>SLIDES FROM VIDEO:<\/strong><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide1-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-34723\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide1-2.jpg\" alt=\"\" width=\"720\" height=\"540\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide1-2.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide1-2-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide1-2-624x468.jpg 624w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/a><br \/>\n<a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34716\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide2.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide2.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide2-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide2-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide3.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34717\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide3.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide3.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide3-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide3-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide4.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34718\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide4.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide4.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide4-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide4-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide5.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34719\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide5.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide5.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide5-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide5-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide6.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34720\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide6.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide6.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide6-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide6-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide7.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-34721\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide7.jpg\" alt=\"\" width=\"625\" height=\"469\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide7.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide7-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide7-624x468.jpg 624w\" sizes=\"auto, (max-width: 625px) 100vw, 625px\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide8.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-34722\" src=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide8.jpg\" alt=\"\" width=\"720\" height=\"540\" srcset=\"https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide8.jpg 720w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide8-300x225.jpg 300w, https:\/\/www.itmtrading.com\/blog\/wp-content\/uploads\/2023\/11\/Slide8-624x468.jpg 624w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/a><\/p>\n<p><strong>SOURCES: <\/strong><\/p>\n<p><a href=\"https:\/\/www.atlanticcouncil.org\/blogs\/econographics\/fed-reverse-repos-hit-a-new-record-an-unhealthy-development\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.atlanticcouncil.org\/blogs\/econographics\/fed-reverse-repos-hit-a-new-record-an-unhealthy-development\/<\/a><\/p>\n<p><a href=\"https:\/\/www.icmagroup.org\/market-practice-and-regulatory-policy\/repo-and-collateral-markets\/icma-ercc-publications\/frequently-asked-questions-on-repo\/5-who-are-the-main-users-of-the-repo-market\/#:~:text=These%20include%20large%20commercial%20banks,treasuries%20of%20large%20non%2Dfinancial\" target=\"_blank\" rel=\"noopener\">https:\/\/www.icmagroup.org\/market-practice-and-regulatory-policy\/repo-and-collateral-markets\/icma-ercc-publications\/frequently-asked-questions-on-repo\/5-who-are-the-main-users-of-the-repo-market\/#:~:text=These%20include%20large%20commercial%20banks,treasuries%20of%20large%20non%2Dfinancial<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-10-27\/fed-s-reverse-repo-facility-to-steer-market-s-t-bill-appetite?sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2023-10-27\/fed-s-reverse-repo-facility-to-steer-market-s-t-bill-appetite?sref=rWFqAg1Y<\/a><\/p>\n<p><a href=\"https:\/\/fred.stlouisfed.org\/series\/BOGZ1FL632051103Q\" target=\"_blank\" rel=\"noopener\">https:\/\/fred.stlouisfed.org\/series\/BOGZ1FL632051103Q<\/a><\/p>\n<p><a href=\"https:\/\/fred.stlouisfed.org\/series\/RRPONTSYD\" target=\"_blank\" rel=\"noopener\">https:\/\/fred.stlouisfed.org\/series\/RRPONTSYD<\/a><\/p>\n<p><a href=\"https:\/\/www.investing.com\/news\/stock-market-news\/treasury-bill-yields-surpass-federal-reserves-reverse-repo-rate-93CH-3173318\" target=\"_blank\" rel=\"noopener\">https:\/\/www.investing.com\/news\/stock-market-news\/treasury-bill-yields-surpass-federal-reserves-reverse-repo-rate-93CH-3173318<\/a><\/p>\n<p><a href=\"https:\/\/www.wsj.com\/articles\/wall-street-buys-more-t-bills-parks-less-at-fed-304cf41e\" target=\"_blank\" rel=\"noopener\">https:\/\/www.wsj.com\/articles\/wall-street-buys-more-t-bills-parks-less-at-fed-304cf41e<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-10-21\/wild-treasury-swings-just-starting-as-bond-traders-buckle-up?sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2023-10-21\/wild-treasury-swings-just-starting-as-bond-traders-buckle-up?sref=rWFqAg1Y<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2023-10-27\/burkina-faso-targets-bigger-royalties-as-gold-production-drops?sref=rWFqAg1Y\" target=\"_blank\" rel=\"noopener\">https:\/\/www.bloomberg.com\/news\/articles\/2023-10-27\/burkina-faso-targets-bigger-royalties-as-gold-production-drops?sref=rWFqAg1Y<\/a><\/p>\n<p><a href=\"https:\/\/www.gold.org\/goldhub\/research\/gold-demand-trends\/gold-demand-trends-q2-2023\" target=\"_blank\" rel=\"noopener\">https:\/\/www.gold.org\/goldhub\/research\/gold-demand-trends\/gold-demand-trends-q2-2023<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Have you ever wondered about the &#8216;Too Big to Fail&#8217; entities and how they&#8217;ve shaped our financial world since 2008? Well, [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":34724,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1713],"tags":[84,247,2752,2876,2877,2878,2879,2880],"class_list":["post-34713","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-peek-beneath-the-skin-of-the-markets","tag-interest-rates","tag-gold-investment","tag-strategies","tag-reverse-repo-meltdown","tag-repo-markets","tag-treasury-securities","tag-money-market-funds","tag-issuance"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34713","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=34713"}],"version-history":[{"count":1,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34713\/revisions"}],"predecessor-version":[{"id":34725,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/34713\/revisions\/34725"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/34724"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=34713"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=34713"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=34713"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}