Blog
Proportionate margining for repo transactions
Abstract: Traders in the repurchase agreement (repo) market protect themselves from the default of their counterparties through margin collected via haircuts on repo transactions. Recent research showing that haircuts on many Treasury repo transactions are low or zero has raised concerns that margining practices in this market are insufficiently strict.
Access Documents
File(s):
File format is text/html
https://www.dallasfed.org/research/economics/2025/0221
Description: Full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of Dallas
Source: Dallas Fed Economics
Publication Date: 2025-02-21
Note: This article is jointly published in Dallas Fed Economics and the Federal Reserve Board’s FEDS Notes.