How averaging will solve Wall Street’s repo window dressing problem

17 January 2024BanksFederal Reserve, repo lendingNick Dunbar

The Federal Reserve’s Basel Endgame is about to solve an age-old problem: How big is a bank’s balance sheet? Right now, it depends when you look

Much ado about FX swaps

4 October 2023Bankscurrency hedging, foreign exchange, FX, FX swaps, repo lendingNick Dunbar

FX swaps may be the fastest growing derivative contract, but they are not the systemic risk the Bank for International Settlements thinks they are

Cash positioning for an upwards rate shock

3 May 2022Fundscash, Federal Reserve, inflation, money market funds, repo lendingNick Dunbar

While the Federal Reserve anticipates 2-3% interest rates will be enough to combat inflation, the choice of cash holdings for financial institutions provides a clue to their confidence in the Fed’s strategy. The evidence shows that they expect a bumpy ride.

The $3 trillion hidden exposure behind the Archegos blowup

30 April 2021Banksequity financing, hedge funds, prime brokerage, repo lendingNick Dunbar

How the push for growth turned equity financing into a hotbed of regulatory arbitrage

How JP Morgan broke the repo market

17 December 2019BanksFederal Reserve, JP Morgan, money market funds, repo lendingNick Dunbar

The Fed relied on JP Morgan to lend out cash into the repo market. But that was before the too-big-to-fail giant made a pivot out of cash into securities.