FT.com / Video & Audio / Interactive graphics - How the repo market works
Comments:
1) Repos as described here are a combination of an asset sale coupled with a forward contract on the underlying. Forward being a simple form of BICs...
2) The fed should have stepped in and done a more generalized intervention as clearing Counterparty in September immediately after Lehman failed, and not just in the repo market, but almost for all OTC activities.
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