Repo Operations

Repo operations began on September 2019 and are expected to continue until the end of January 2020.

To find out how much was transacted each day in Repo Operations by the Fed, you can search here: https://apps.newyorkfed.org/markets/autorates/tomo-search-page

I've taken the liberty of pulling up all repos beginning in September. Here they are in reverse order:

Date| Billions $ |Running Total in Billions $

11/01/19 73.133 2424.209
11/01/19 31.450 2351.076
10/31/19 72.533 2319.626
10/30/19 59.850 2247.093
10/29/19 59.483 2187.243
10/29/19 45.000 2127.76
10/28/19 76.583 2082.76
10/25/19 77.343 2006.177
10/24/19 89.154 1928.834
10/24/19 45.000 1839.608
10/23/19 49.854 1794.608
10/22/19 64.904 1744,754
10/22/19 35.000 1679.85
10/21/19 58.150 1644.85
10/18/19 56.650 1586.70
10/17/19 73.500 1530.05
10/17/19 30.650 1456.55
10/16/19 75.000 1425.90
10/15/19 67.600 1350.90
10/15/19 20.100 1283.30
10/11/19 61.550 1263.20
10/11/19 21.150 1201.65
10/10/19 45.500 1180.50
10/10/19 42.600 1135.00
10/09/19 30.800 1092.40
10/08/19 37.500 1061.60
10/08/19 38.850 1024.10
10/07/19 47.050 985.25
10/04/19 38.550 938.20
10/03/19 33.550 899.65
10/02/19 42.050 866.10
10/01/19 54.850 824.05
09/30/19 63.500 769.20
09/27/19 22.700 705.70
09/26/19 49.000 683.00
09/26/19 50.100 634.00
09/25/19 60.000 583.90
09/25/19 75.000 523.90
09/24/19 75.000 448.90
09/23/19 30.000 373.90
09/23/19 65.750 343.90
09/20/19 75.000 278.15
09/19/19 75.000 203.15
09/18/19 75.000 128.15
09/17/19 53.150 53.150
-Beginning-

As of closing on November 1, 2019 the Fed has injected 2 trillion 424.209 billion $USD.

(In the American system one billion is 1,000,000,000 and a trillion is 1,000,000,000,000 so one trillion is one thousand times one billion.)Source

We know from the Fed website that Repo and Reverse Repo Agreements are conducted only with Primary Dealers.

Here is a copy of that list:

Primary Dealers:
Amherst Pierpont Securities LLC
Bank of Nova Scotia, New York Agency
BMO Capital Markets Corp.
BNP Paribas Securities Corp.
Barclays Capital Inc.
BofA Securities, Inc.
Cantor Fitzgerald & Co.
Citigroup Global Markets Inc.
Credit Suisse AG, New York Branch
Daiwa Capital Markets America Inc.
Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
HSBC Securities (USA) Inc.
Jefferies LLC
J.P. Morgan Securities LLC
Mizuho Securities USA LLC
Morgan Stanley & Co. LLC
NatWest Markets Securities Inc.
Nomura Securities International, Inc.
RBC Capital Markets, LLC
Societe Generale, New York Branch
TD Securities (USA) LLC
UBS Securities LLC.
Wells Fargo Securities, LLC

We know that one or more of these primary dealers is unable (or unwilling) to secure lending from lending institutions to balance their books (LCR requirements). Other lending institutions are possibly either charging too much interest (not likely due to competition), don't have enough cash themselves, or don't trust the lendee--solvency. This is why they are now "borrowing" from the Fed. Loans from the Fed typically last anywhere from 1 day to 30 days.

The real question is: Why is the Fed involved?

What is going on here?

-Are we facing a financial crisis?
-Is this a replay of 2008?
-Should we prepare for a recession?
-What does this mean in terms of Crypto currencies?

Here is a video with an explanation and some different perspectives on this topic:

In other news:

Steem (STEEM) price for today is $0.152735 with a 24-hour trading volume of $1,936,836. Price is up 8.7% in the last 24 hours.Source

Also, isn't it interesting that the Primary Dealers include non-US companies? (i.e. Deutsche Bank Securities Inc.)

What are your thoughts?

Is it time to panic, or will things be OK?

-Akiroq

Gambar oleh Gerd Altmann dari Pixabay