Just look at the three-year long-term repo operation that the ECB just recently put in place.
The mechanism by which this fraud was carried out was called Repo 105 .
Instead, the action is in the repo market, where credit is provided in return for assets.
The SEC is now investigating several banks regarding their use of Repo 105 accounting.
FORBES: Goldman Sachs Executives May Have Lied But Not About Anything "Massive"
So maybe the Bank's Extended Collateral Term Repo (get used to it) will address that problem.
Thus the repo market has become intimately linked to the cash market in Treasury bonds.
The sudden shutting of the overnight repo market to Bear contributed to its downfall.
The repo market also helps participants to manage short positions in the cash market for government bonds.
But they are edgy about his implicit threat to clamp down on the vast, unregulated repo market.
And as a result, all the markets--the repo markets, all the financing markets--just came to a screeching halt.
Essentially, absolutely every bank in the eurozone is now being encouraged to repo to maturity eurozone sovereign debt.
FORBES: Eurozone: It's Working, the Carry Trade is Working, Euro Saved!
This made such funds, in turn, an unreliable source of finance in repo, commercial paper and other markets.
Which means there is much more demand for overnight loans on the repo market than for year-long loans.
It is at the rough edges of the repo market that the New York Fed has signalled its concern.
The seven day repo rate in China dropped below 2.5% Wednesday, exceeding expectations.
The accounting standards for both these trades and repo-to-maturity trades allowed off-balance-sheet treatment.
FORBES: Uncontrolled Risk Taking, Not Bad Accounting, Did MF Global In
Global regulators like the Basel-based Financial Stability Board claim the repo market is opaque and a menace to financial stability.
Though stable, however, deposits are a more expensive form of finance than repo markets for banks that lack branch networks.
ECONOMIST: The price of the Fed��s lifeline is yet to be determined
Mr. Cuomo's investigation found that Repo 105 transactions started as far back as 2001, said the person familiar with the probe.
The Securities and Exchange Commission's investigation into Lehman's collapse is focusing on Repo 105 transactions, said people familiar with the matter.
While the WisdomTree Dreyfus Japanese Yen Fund holds bonds, repo and deposits, the CurrencyShares Japanese Yen Trust holds 100% Japanese Yen.
"Forking a repo" is a term used by developers to mean using somebody else's project as a starting point for your own.
It also means ensuring that risk-management systems can alert senior managers if their repo traders might be trying to manipulate the market.
Steve DeLaney of JMP Securities says REITs can borrow against 95% to 97% of a government-backed mortgage security's value in the repo market.
WSJ: HEARD ON THE STREET: Debt Ceiling's Overlooked Flash Crash
Longer-term refinancing operations, or LTROs, are a form of short-term repo auctions held by the ECB to inject liquidity into the fiancial system.
FORBES: ECB's Liquidity Injection Doesn't Justify This Rally, Could Derail It
Did Senator Kaufman got CFO Viniar to put a Goldman statement regarding Repo 105 and other balance sheet window-dressing techniques in the record?
FORBES: Why Banks, And Their Auditors, Are Getting Away With Financial System Murder
In March of 2010, the SEC asked CFOs to tell them about their use of Repo 105 and other balance sheet shifting techniques.
FORBES: Goldman Sachs Executives May Have Lied But Not About Anything "Massive"
But the fact remains that Annaly is beholden to the repo market, as well as being heavily exposed to any shift in interest rates.
WSJ: HEARD ON THE STREET: Debt Ceiling's Overlooked Flash Crash
The Eurepo curve is a chart which shows what European banks have to pay to borrow when pledging assets - or "repo-ing" - for loans.
Investment banks have already rushed to reduce their reliance on overnight funding in repo markets, after lenders lost faith in the securities used as collateral.
ECONOMIST: The price of the Fed��s lifeline is yet to be determined
应用推荐