5 trillion in overnight repos
, while the aggregate insured bank deposits in the United States were only twice as much.
Fannie Mar and Freddie Mac were not legally backed by the government, nor were money market funds, nor overnight repo
The UAE central bank trimmed the overnight repo
rate by 15 basis points to 4.
25 announced another 25 basis points increase in the overnight repo
rate to 7.
Second, the rate pressure should be greater in overnight repo
rates than overnight LIBOR because of the timing of the two markets: The brokered repo market is active during the afternoon in the United States, while the London LIBOR-based Eurocurrency market is closed.
The article then examines the difference between general and specific collateral, defines the repo spread and dividend, presents a framework for determining the equilibrium repo spread, and describes the average pattern of overnight repo
spreads over the auction cycle.
The overnight repo
rate dropped 24 basis points to 4.
5% of deposits that each bank can borrow from the overnight repo
This increased pressure on market liquidity and kept the overnight repo
rate closer to the corridor ceiling despite substantial liquidity injections by the State Bank of Pakistan (SBP).
The result is that the economy gets too much overnight repo
, and the rest of us pay a price for it, because favoring such short-term debt means that more financial firms like Bear, Lehman, and MF Global fail.
Chart 4 graphs overnight repo
financing by primary dealers as a function of marketable Treasury debt on a monthly basis from October 1980 (when the Federal Reserve began publishing data on primary dealer repos) to September 1990.
Bangladesh Bank has accepted all the four bids it received for the overnight repo
actions, the central bank said.