Single-Tranche Repurchase Agreements

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The Single-Tranche Repurchase Agreements

New York Fed:

“On March 7, with spreads between 1-month Treasury repo and 1-month Agency MBS repo having reached as high as 140 basis points, the Desk began to initiate a series of 1-day forward 28-day single-tranche RPs.6 This 28-day RP book grew to $80 billion over the course of the year (Chart 6). These operations were intended to narrow the 1-month repo spread between Treasury and Agency MBS collateral and provide the primary dealers a steady financing source for Agency MBS. In response, the spread eventually narrowed to about 20 basis points, close to historical norms.”[1](Via Prins)

Prins:[2]

“In 2009, the Fed offered a total of $80 billion for short-term loans to holders of mortgage-backed securities."


Wall Street Bailout Accounting
(back to main table)
SINGLE-TRANCHE REPURCHASE AGREEMENTS
Balance Sheet
Disbursed*: $80B [3]
Current outstanding: $0 [4]
Public Funds
Maximum at-risk: $80B [5]
Current at-risk: $0 [6]

* See the methodology and glossary for definitions of "disbursed," etc.


Funding agency and aid type

Who benefits

Background

Notes

Articles and resources

Related SourceWatch articles

References

  1. Bank of New York, “Domestic Open Market Operations During 2008”, January 2009, p. 11
  2. Prins’ Mother Jones analysis. Dec. 21, 2009. http://motherjones.com/politics/2009/12/behind-real-size-bailout
  3. Prins’ Mother Jones analysis, Dec. 21, 2009. Federal Reserve Bank of New York, “Domestic Open Market Operations during 2009," Table 3, p. 30.
  4. Prins’ Mother Jones analysis. Dec. 21, 2009. http://motherjones.com/politics/2009/12/behind-real-size-bailout Federal Reserve Bank of New York, “Domestic Open Market Operations during 2009,” [1] Table 3, p. 30.
  5. “Behind The Real Size of the Bailout,”[ http://motherjones.com/politics/2009/12/behind-real-size-bailout] December 21, 2009. Federal Reserve Bank of New York, “Domestic Open Market Operations during 2008” http://www.newyorkfed.org/markets/omo/omo2008.pdf [2] p.11
  6. Prins’ Mother Jones analysis. Dec. 21, 2009. http://motherjones.com/politics/2009/12/behind-real-size-bailout Federal Reserve Bank of New York, “Domestic Open Market Operations during 2009,” [3] Table 3, p. 30.

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