Repo Blowup Fueled by Big Banks and Hedge Funds: BIS

The transcript discusses the recent issues in the repo market, highlighting both temporary and structural factors. It emphasizes the role of big banks and hedge funds in the market and the challenges they face in providing short-term funding. The discussion also touches on the ECB's inflation strategy and the potential risks in the FX swaps market, which are closely related to the repo market. The authorities are better prepared to handle future tensions, but the interconnectedness of financial markets remains a concern.

What precautions have authorities taken to deal with tensions in the repo market?

What is the significance of FX swaps in relation to the repo market?

How does the borrowing of non-US residents in FX swaps compare to on-balance sheet borrowing?