Why The Repo Market Will Need The Feds Cash Yet Again | Scott Skyrm & Joseph Wang

Published: April 29, 2022, 8:06 p.m.

b'Scott Skyrm, Executive Vice President in fixed income & repo at Curvature Securities, joins former senior Fed trader Joseph Wang and host Jack Farley to share his insights from deep within the repo markets. Skyrm explores whether the Fed\\u2019s forthcoming balance sheet runoff will agitate repo markets like last time in September 2019, when repo rates spiked higher. Skyrm (@ScottSkyrm) and Wang (@FedGuy12) weigh important considerations, such as the Fed\\u2019s involvement with the market and what current repo rates indicate about the level of bond shorting. \\n\\nSkyrm tells Farley (@JackFarley96) that the trillions of Treasury collateral that the market will have to absorb over the next year will drain the ~$1.8 Trillion in Fed\\u2019s reverse repo facility, yank repo rates higher, and eventually cause the market to rely once again on the Fed\\u2019s standing repo facility.\\n\\n--\\nBCB is Europe\\u2019s leading provider of business accounts and trading services for the digital asset economy. With a dedicated focus on institutional payment services, BCB Group provides business banking, cryptocurrency and foreign exchange market liquidity for some of the world\\u2019s largest crypto-engaged financial institutions.\\n\\nFor more information, please visit https://bcbgroup.com/jack'