Investors are seeking the right tools for liquidity and diversification in this everchanging market environment. Market volatility and the recent banking crisis are hinting at a near-term recession for markets worldwide.

This market volatility – combined with credit concerns – has led investors to consider risk-efficient options that will support cash investment and cash borrowing effectively. Moreover, excess cash with interest rates well into positive and restrictive territory across the globe present a significant opportunity cost. As a result, investors are looking for alternative repo solutions to diversify their collateral sourcing and cash investment capabilities, which can be critical during times of crises.

In this article, we review the evolution of the repo market, describe the effects of recent market events, and outline how a peer-to-peer repo model can be beneficial in the Europe, the Middle East and Africa (EMEA) markets.