As the Fed Injects Billions More to Stabilize the Repo Market, Some Traders Wonder if Saudi Arabia Is to Blame for Shocks

The repo market, which powers trillions in overnight borrowing by the world’s biggest banks and financial institutions, came within a hair of full-blown meltdown in September. Despite the Federal Reserve Bank’s commitment on Friday to pump billions into the market well into next year, the underlying problem at the heart of the liquidity crisis remains.