Repo Rate

Last Friday we published this note about the recent disruption in the repurchase agreement (repo) market.  This is a short-term lending resource for various financial institution (banks and non-banks alike) to borrow cash by temporarily selling high-quality assets and promising to buy them back

The Land of Oz was ruled by The Wizard of Oz in the children’s novel from 1900, The Wizard of Oz by L. Frank Baum.  His subjects held the mysterious man in high regard. Dorothy and her friends even traveled to Emerald City, the capital of Oz, because they were certain he was the only person capable of solving their issues.

At Tuesday’s Pie Party, a question about the Repo Market (thanks Jerry S.) started the meeting.  After a quick definition, we concluded it has largely moved back to normal, and the system is working orderly once again.