What is the repo market, and why does it matter?

The repurchase agreement, or “repo,” market is an obscure but important part of the financial system that has drawn increasing attention lately. On average, $2 trillion to $4 trillion in repurchase agreements – collateralized short-term loans – are traded each day. But how does the market for repurchase agreements actually work, and what’s going on … Continue reading What is the repo market, and why does it matter?