Repo Market Dynamics
Shadow banks, particularly money market funds, have accumulated significant cash reserves, leading to a shift where the Fed becomes the primary borrower in these markets. Analysts predict that the Fed will need to maintain its balance sheet size, resulting in continued intervention in the repo market, with expectations of borrowing at least a trillion dollars daily by mid-2016. This ongoing scenario raises questions about the future of money markets and the Fed's role within them.In this clip
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Odd Lots
Episode 9: The 2016 Predictions Episode
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