The Fed’s Repo Problems are Only Beginning as the Biggest Bubble in History Looks Ready to Pop
What’s driving the Fed’s interventions in the repo markets? $500 billion in fresh liquidity is coming over the next month. Major bank failures on the horizon. The Fed just held another oversubscribed repo swap on Monday. Banks offered more than $54 billion in Treasuries and mortgage-backed securities against a $50 billion limit. The rates paid…