Biggest Borrowers & Lenders in the $13.5-Trillion Repo Market: How the Hedge Fund “Basis Trade” & Money Market Funds Fit In

The size of the repo market has ballooned to over $13.5 trillion in outstanding agreements daily, according to the government’s Office of Financial Research (OFR). Via the repo market, financial institutions borrow from, and lend to, each other mostly overnight, but also for longer periods, such as for one week, secured by high-quality liquid collateral...