Email of the day on repo market liquidity
Comment of the Day

March 03 2020

Commentary by Eoin Treacy

Email of the day on repo market liquidity

The coronavirus scare is obviously a factor for markets at the moment, but the repo crisis remains in the background too. First question - what are your thoughts on relative (best and worst) asset class performance if the repo crisis flares up on top of the coronavirus pandemic. Second related question - does the coronavirus effect (eg reduced rates, lower company profits, high yield bond risks etc) make it more likely that repo will get worse?

Eoin Treacy's view

Thank you for this question which is particularly relevant against a background of tighter liquidity as banks underperform. Here is Bloomberg’s repo market summary from yesterday:

Click HERE to subscribe to Fuller Treacy Money Back to top