Questions tagged [money-markets]

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3
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1answer
112 views

Practical purpose of overnight repos

I know this might not be a very quantitative question, but I figure this is the most relevant place to ask this. Over that last few days, there has been a lot of news from the repo market, for ...
1
vote
1answer
146 views

repo rate v.s. reverse repo rate

From a book, I read that the repo rate is usually higher than the reverse repo rate. i.e., the rate of financing a long security position is higher than the rate to lend cash using securities as ...
16
votes
1answer
373 views

Could banks move to continuous (rather than overnight) funding?

For a long time, the dominant tenors for money market and FX instruments were 6 months and 3 months, and banks slowly moved to commercial trades at those tenors but funding overnight. If this is a ...