This Week's Top Stories
October 22 2020
One industry objective of a securities lending CCP is to drive lender participation and increase the size of the overall market. By providing a known and consistent counterparty, as well as lowering borrower costs and potentially improving prices, more lenders should be incentivized to join up and borrowers should have more capacity. We test the idea of whether Eurex’s Lending CCP is succeeding in market expansion, including whether lenders are utilizing the CCP’s services for non-traditional purposes.
October 21 2020
As the repo markets enter Q4 2020, banks are preparing the results for additional stress tests, against a backdrop of strict limitations such as capped dividend payments and prohibitions against share repurchases. At SIFMA’s annual meeting, Goldman Sachs’ global treasurer, Beth Hammack, talked about some of year-end signposts from the Fed the markets are looking for, and what might be expected from suspended regulations.
