"With FARPs, instead of buying assets, the Fed will be disposing - TopicsExpress



          

"With FARPs, instead of buying assets, the Fed will be disposing of securities it holds on its balance sheet in exchange for liquidity soaked up from an expanded list of counterparties, which now includes asset managers and money market funds — all of whom are hungry for risk free capital preservation and the avoidance of negative rates. In theory, this should set a definitive floor on GC repo rates and ease the collateral squeezes that have been plaguing the US sovereign bond market for most of this year."
Posted on: Tue, 24 Sep 2013 03:19:34 +0000

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