US Treasuries Make Up 90 Percent Of Bi-Party US Repo Market

Researchers who want information about the US tri-party repo market can turn to the two main clearing banks, The Bank of New York Mellon Corporation (NYSE:BK) and JPMorgan Chase & Co. (NYSE:JPM), but detailed information about the bi-party repo market is much harder to come by. To help fill that gap, Adam Copeland, Isaac Davis, Eric LeSueur and Antoine Martin at the Federal Reserve Bank of New York have been using newly detailed reports required of primary dealers since April 2013 to delve into the bi-party repo market, and they’ve found a startling discrepancy between the two.

Treasuries portion in the repo market

“Treasury securities make up 90 percent of the collateral posted in bilateral repo. Other securities, such as agency...