Shadow banking and collateral

to follow up  on 

Shadow Banking and the unintended consequences of QE and other central bank policies

The recent decision of the FED about their reverse repo facility programm, it is true that this might have some impacts on rates 

http://www.reuters.com/article/2013/08/21/us-usa-fed-minutes-repo-idUSBRE97K0ZN20130821

However…. my guess here is that the FED is more worried about putting good quality collateral in the market in time of stress. What will be interesting  to observe is , when stress comes,  the average maturity   (so far overnight).

 

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