Category Archives: DataWatch

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Will private placement bonds win favor as repo collateral?

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Companies are privately issuing a record level of private-placement bonds, according to the Financial News April 4. RepoWatch wonders if these bonds will begin showing up as repo collateral. From the Financial News: The market for privately placed bonds is … Continue reading

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Do repo and other risks still threaten the world economy?

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As regulators try to force commercial and investment banks to have more equity and less debt, by raising their capital requirements, the banks continue to find ways to evade the rules as they did leading up to the financial crisis … Continue reading

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Repo continues long-term growth track in Europe

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The European repurchase market declined 15.3 percent in December, as compared to the prior June, because of the unwinding of some “very large and somewhat specialized transactions,” the European Repo Council reported March 10. The council did not identify the … Continue reading

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RepoWatch roundup of too-big-to-fail institutions

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RepoWatch’s quarterly roundup of too-big-to-fail financial institutions shows who are the biggest and who are the riskiest. RepoWatch tracks these banking giants because repo is a major way they finance their growth, and when there’s a run on repo it’s … Continue reading

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RepoWatch roundup of securitization data

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RepoWatch’s quarterly roundup of securitization data shows no sign that securitization – and the credit it provides businesses and consumers – is reviving. RepoWatch tracks securitization because it was the combination of repos and securitization, which Yale professor Gary Gorton … Continue reading

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RepoWatch roundup of repo data

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Last updated June 26, 2012 RepoWatch’s quarterly roundup of repo data shows a very slow-growing financial market dominated by the mega-banks and still relying largely on collateral that is guaranteed by the U.S. taxpayer: PRIMARY DEALERS (1) Federal Reserve primary dealers, repo volume, … Continue reading

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Bloomberg: Repo news briefs

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Recent  briefs from Bloomberg. For more detail, click on links: March 2: Remember when the Federal Reserve was keeping short-term repo rates low after the dot.com and Internet busts and the 9/11 attacks? Some blame those low interest rates for fueling the destructive … Continue reading

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FSOC studies data needed to spot systemic risk

Bloomberg has obtained a copy of a confidential Feb. 3 study by the Financial Stability Oversight Council that discusses data the council needs in order to be able to determine when a financial institution poses systemic risk to the financial … Continue reading

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FASB proposal to report more repo detail

Reporting on repurchase agreements could get more accurate under a proposal from U.S. and European accounting boards that would require more detailed disclosure. Currently U.S. companies can net repo borrowing with repo lending and report only the difference, when the … Continue reading

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Regulators seek repo data

The repurchase market could get more sunlight under a new proposal announced Jan. 25 by the Securities and Exchange Commission and the Commodity Futures Trading Commission. Under the proposal, hedge funds, private equity funds and unregistered money market funds will have … Continue reading

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Fed approves MF Global and SG Americas Securities as Primary Dealers

The Federal Reserve Bank of New York today added two Primary Dealers to the list of 18 broker-dealers approved to repo with the New York Fed. The newly approved dealers are MF Global Holdings Inc. and SG Americas Securities, LLC. … Continue reading

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NYU: Most of the leverage was in repos

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“Repo financing was the basis of most of the leveraged positions of the shadow banks.” From RepoWatch’s view, that’s the key sentence in “Regulating Wall Street,” a November 2010 book authored by New York University Stern School of Business professors Viral … Continue reading

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Fitch: Money market funds increase repo lending

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U.S. money market funds are increasing their investment in repurchase agreements, and that’s a trend unlikely to change anytime soon, according to a October 4 report by Fitch Ratings, the credit rating service. Repo activities by U.S. prime money market funds … Continue reading

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Re-use of collateral is major tool for leveraged finance

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Rehypothecation helps explain rapid bank growth in the years leading up to the financial crsis of 2007-2008 and even faster bank deflation since, according to a July 2010 study by International Monetary Fund senior economist Manmohan Singh. Specifics are hard … Continue reading

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To assess risk, regulators need more data

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To assess the extent of systemic risk in the financial markets, regulators should collect the information below from all participants, aggregate it into reports and make those reports public, perhaps on a web site. This is the July 16, 2010, suggestion … Continue reading

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Should Fed bring back M3 and its repo data?

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Economists and financial market analysts are wrestling with the tough job of getting a handle on the repurchase market without comprehensive data, and some are calling on the Federal Reserve to reinstate its publication of the M3 measure of the … Continue reading

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FT: Repo revival nowhere in sight

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The vital U.S. repurchase market is 40 percent below its peak in early 2008 and has shown very little sign of rebuilding, the Financial Times reported April 14. The Times estimates the repo market at about $2.5 trillion, down from … Continue reading

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Economists make rare estimate of repo volumes

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Basel economists have found repo markets were much more tumultuous in the U.S. than in Europe during the financial crisis of 2007 and 2008, according to a December 2008 study. This study is important because it makes a rare effort … Continue reading