November 4, 2024 (NO COMMENTS)

Tri-party rates for US repos backed by fringe collateral – such as private-label asset-backed securities and non-corporate debt – have declined sharply since late July, decoupling from the general cost of secured borrowing with no immediate or obvious cause. Data published by the Office of Financial Research (OFR) shows that the average daily rate for tri-party repos collateralised by assets other than US Treasuries, agency securities, or corporate debt dropped suddenly from 5.49% on July 19, to