The repo safe haven December 2, 2012 at 6:23 am

From a presentation by Eurex Repo:

GC Pooling − Take advantage of collateralized funding

Benefits

• Zero regulatory costs due to trading via Eurex Clearing depending on country of residence

This is entirely accurate, I am sure. But should it be? As I said earlier, the idea that repo, especially repo with `Re-use of collateral and pledge to ECB’ of those notoriously safe assets, European sovereign bonds (cf. Fuzzy Corzine, late of this parish), attracts no capital at all worries me. I’m pretty sure that this door will only be bolted well after the horse has fled, though.

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