What are Reverse Repos and Repos? Fed Enters Overnight Reverse Repo Market


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By Derek Moore. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

The Federal Reserve this week set a record participating in the Overnight Reverse Repo Market. Previously in 2019 they had to enter the Overnight Repo Market as annualized rates soared. So, what are Reverse Repos? What are Repos? Why is the Fed trying to control interest rates by doing market operations in the Reverse Repo Market?

What is the Reverse Repos?

What are Repos?

What is the Overnight Repo Market and Overnight Reverse Repo Market ON RRP

What is the annualized repo rate?

How to calculate what the repo rates are?

How do collateralized repo transactions work?

Fed Funds rate

Federal Reserve IOER Interest on Excess Reserves

Mentioned in this Episode:

New York Fed Overnight Reverse Repos https://www.newyorkfed.org/markets/domestic-market-operations/monetary-policy-implementation/repo-reverse-repo-agreements

Financial Times FT article on reverse repo Fed intervention https://www.ft.com/content/cdec7f2e-6129-412c-b118-8906a2a0f92f

Derek Moore book Broken Pie Chart https://amzn.to/2RUP4sy

126 episodes