Despite warnings from the Federal Reserve about the financial-stability risk that repurchase agreements pose, the central bank holds 60% of repo deals backed by Treasurys, according to the Office of Financial Research. “They’ve become a very large player in a very short period of time, and that creates a market distortion that I view as undesired,” said Josh Galper, a repo-market expert at Finadium.
TheStreet.com (11/18)
