Repo and FX markets buck year-end crunch fears
Price spike concerns ease as September’s surprise SOFR jump led to early preparations for bank window dressing
A rise in the cost of repo and foreign exchange derivatives has become a year-end tradition for several years now, as banks try to shed balance sheet exposures to keep a lid on future capital requirements.
Fears were heightened about what was to come on December 30 and 31 following a bigger-than-normal jump in secured funding costs and FX derivatives pricing at the end of September.
However
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