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There's been a lot of discussions regarding end-of-year balance sheet constraints as dealers wind down their repo activity. However, the Fed is engaged in open market repo operations in overnight and term repo.

Dealers are taking in cash and providing collateral to the Fed. Do these transactions alone add to balance sheet? From the dealer's perspective, it's a repo operation. If the dealer then does a reverse repo transaction with a hedge fund where they lend the cash and take in the collateral, are these all nettable?

I don't understand from an accounting perspective, which transaction (repo or reverse repo or both) adds to the banks balance sheet.

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