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Repo market: Turmoil at the core of the financial system?
The market for “repurchase agreements” (repos) is a core element of the financial system. Measuring around EUR 11 trillion in the EU the market provides funding for banks, helps traders finance their bond portfolios and fund managers to manage their cash holdings. Hence, the smooth functioning of repo markets is vital for banks, fund managers and bond traders. The end of “Quantitative easing” and adjustments in central bank balance sheets has further increased the importance of repo markets. In particular, since 2022, many central banks have made significant headway towards reducing their footprint in government bond markets. In this new environment, repo markets are starting to play a core role in the distribution of liquidity. Repeated episodes of volatility, in particular in the US market, have provided evidence for some fault lines. Against this background this webinar will provide a comprehensive discussion of the repo market.