September Mayhem in U.S. Repo Market More Than a Hiccup, BIS Says

The video discusses year-end funding pressures and the role of the Federal Reserve and Treasury in easing these pressures. It highlights the impact of regulations, such as Basel capital rules, on funding and suggests potential tweaks. The discussion also covers the repo market, risk concentration in banks, and the need for regulatory adjustments to ensure liquidity in the treasury market, which is crucial for global asset stability.

What mechanisms have the Federal Reserve and the Treasury set up to address short-term funding pressures?

How does the BS report differ from other regulators' perspectives regarding year-end funding pressures?

What role do Basel capital rules play in the current funding situation according to the discussion?

What are the implications of having a concentration of risk among a few large banks?

Why is liquidity in the Treasury market crucial for the overall financial system?