Latest posts
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💣 Repo Markets, Credit Crisis & Special Spreads: The Day the Collateral Got Cold
Think of the repo market as the blood vessels of Wall Street. Smooth repo flows = a happy, oxygenated market. But in 2008, the vessels clogged. Suddenly, no one trusted anyone else’s blood type $($read: collateral$)$. Let’s dissect how repo mechanics fed into the collapse of Lehman and Bear Stearns, explore collateral types, and understand…
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🔄 The Repo Playbook: How Wall Street Borrows with a Promise to Return
Imagine this: You lend your friend your favorite watch for a week. In return, they give you cash and promise to return the watch with a small thank-you gift $($interest$)$ next Friday. That’s basically how a repurchase agreement (repo) works — but with bonds instead of Rolexes. Let’s explore the mechanics, motivations, and risks of…