Insights

Centrally cleared repo market brief

Statestreet in centrallyclearedrepomarket highway hero v2

Through innovative and flexible cash investment and financing solutions, we provide both our custody and third-party clients access to the Fixed Income Clearing Corporation (FICC) sponsored repo platform.

Given the interconnectivity between repo markets, monetary policy and macroeconomic trends, we want to help you stay up to date on what’s happening in the market with a specific focus on the rapidly growing sponsored segment. With views on recent market trends and what to expect in the future, our quarterly briefs give you the insight you need to unlock the benefits of centrally cleared repo.

October 2024

Highlights from this quarter

  • Inflows continued to money market funds (MMFs) this quarter and the short-end remained in focus even as Fed rate cuts kicked off.
  • Heavy repo cash was met with strong collateral supply, which elevated repo rates and kept FICC Sponsored Repo attractive relative to the Fed RRP. Hedge funds, in particular, boosted FICC participation significantly.
  • The Fed’s easing cycle kicked off with an aggressive cut as inflation has begun to show signs of ebbing, but still has not reached target range.
Share

Stay updated

Please send me State Street’s latest Insights.