Friday, March 02, 2007

The euro area repo market

The growth in the euro area repo market. Rising interest rates and the new BIS rules have allowed the market to develop.

FT.com :
"Repo traders also say that the rising interest rates in Europe over the past year have created more business because there is increasing scope to make money on the interest rate spread between European overnight banking rates and the repo rates set on the various securities used as collateral."

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