U.S. Fed seen launching repo facility in early 2020 - Deutsche Bank
Share:
(Reuters) - The Federal Reserve may launch a policy tool to lend to banks using Treasuries and other securities as collateral in early 2020, with possible testing to begin later this year, a Deutsche Bank strategist said.Such a standing fixed-rate repurchase agreement, or repo, facility would serve as a backstop against sharp spikes in interest rates in money markets, which are occurring with growing frequency at month- and quarter-end."We reaffirm our expectations that the Fed could test this..