Repo markets are an important first stage of monetary policy transmission. In the European
repo market, the majority of participants, including non-dealer banks and non-banks, do not …

We document significant and persistent price dislocations in secured and unsecured
wholesale dollar funding markets between US money market funds (MMFs) and highly-rated …

We provide direct evidence of how dealers' funding liquidity affects their liquidity provision in
securities markets. Worse funding liquidity (higher repo haircuts and rates) leads to larger …

We model how securities dealers respond to regulations on leverage, position, and liquidity
such as those imposed by the Basel III framework. The dealers respond by endogenously …

US money market funds (MMFs) play an important role in short-term markets as large
investors of Treasury bills (T-bills) and repurchase agreements (repos) with banks and the …

We examine the interaction of regulatory reforms and changes in monetary policy in the US
repo market. Using a proprietary data set of repo transactions, we find that differences in …

Despite the availability of low-cost exchanges, over-the-counter (OTC) trading is pervasive
for most assets. We explain the prevalence of OTC trading using a model of adverse …

In this paper, we examine the Federal Reserve's newest policy tool, known as the overnight
reverse repo (ONRRP) facility, to understand its effects on the repo market. Using …

Postcrisis regulations apply stricter liquidity rules to both money market funds (MMFs) and
banks, requiring MMFs to do more overnight lending and banks to borrow longer-term …

Financial intermediaries rely on the repo market to finance the securities on their balance
sheets. Persistent inability to fund these securities would lead to stress in money markets, as …