This paper analyses U.S. secured repo spreads by jointly looking into reserves, dealer balance sheet usage, hedge fund leverage, and Treasury issuance. Using a quantile regression framework, the results show that repo market dynamics are strongly state-dependent. Higher level of reserves consistently compress repo spreads to the Federal Reserve’s overninght reverse repo offering rate and remain the primary stabilizing force, particularly in tighter funding conditions. Hedge fund activity appears to amplify dealer balance-sheet pressures in lower quantiles, reflecting the impact of leveraged demand in normal markets. As spreads rise, this effect weakens. […]