Most non-centrally cleared repos have zero haircuts, FSB warns
New report provides sweeping view of $16 trillion market and suggests ways to close data gaps
Most non-centrally cleared government bond repurchase agreements operate with zero haircuts and therefore pose significant risks, the Financial Stability Board (FSB) has warned.
In a report published today (February 4), the FSB provides an overview of vulnerabilities in government bond-backed repo markets. Its findings come mainly from data supplied by FSB member jurisdictions, as well as insights from outreach with relevant industry stakeholders such as asset managers, hedge funds and money
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