Loading ...When lending money time and to who are the big factors, that set the rate.
The Repo mkt is a clearing mkt where the Bluest of blue chip institutions, lend their excess cash and borrow if short, usually only on an overnight basis,
Therfore the risk should be near zero and the rate at a near discount to bank rate, as time is negligible……that someone/some people are consistently short every day, should be in a normal world, the biggest claxon u can get of a problem….which we are not privvy to…someone/some peoples risk is so bad they are not able to borrow all their o/n needs.
Hence Armstrong saying the Fed had to inject $ 1.5 trillion