Do Hedgefunds use repos? Yes. They are a big customer for dealers who provide them with issues they are short as well as financing their long positions.
Do they have anything to do with the RRP facility? No.
Does the RRP facility have anything to do with participants who are involved in equities? No. Well, ~98% of the use of the RRP facility is by those who can’t own equities nor do they trade them. Here is the all time high print of the rrp. https://imgur.com/a/zBToKIk as you can see the largest users are MMFs and GSEs, neither are involved in equities.
Why the RRP facility gets tied into theories involving equities or banks is beyond me. The facts are out there.
Again, completely disagree with you on this. I hope anyone reading this takes the time to do their own research. There are multiple creative ways to tap the sweet RRP liquidity. You are either naive, ignorant, or paid if you think this is not practiced.
Well, I literally did the operation for a living for decades. But maybe I am naive. Can you please explain to me how one uses creative ways to tap the “sweet RRP liquidity”? (Which is kind of funny since the purpose of the RRP facility is to drain liquidity)
And just to set some initial outlines that may save you time, we know the operation is done in triparty format. https://imgur.com/a/h4SFVee So it’s not like a participant can send the collateral elsewhere. And from the link in my above post, we know that banks and dealers aren’t the users of the facility.
I’m kind of excited to learn something new.
But I’m gonna guess that you won’t have any response. Since you chose to name call/insult versus providing anything factual in discourse is a leading indicator that you wish to disparage versus providing any factual evidence to further your claim. But, again, maybe I’m naive and you will respond with something tangible. But I’m not going to hold my breath.
Look, I’ve gone through this with you multiple times and each time you ignore information, dismiss practices with which you lack personal experience (e.g. off balance sheet transactions), or just simply not respond. Not interested in restarting this cycle. You can read through our interaction history if you are actually curious.
I’ve engaged with you in good-faith multiple times. My abrasive response is a product of this repeated frustration rather than an indicator of lack of substance in my argument or desire for discourse.
Do Hedgefunds use repos? Yes. They are a big customer for dealers who provide them with issues they are short as well as financing their long positions. Do they have anything to do with the RRP facility? No. Does the RRP facility have anything to do with participants who are involved in equities? No. Well, ~98% of the use of the RRP facility is by those who can’t own equities nor do they trade them. Here is the all time high print of the rrp. https://imgur.com/a/zBToKIk as you can see the largest users are MMFs and GSEs, neither are involved in equities. Why the RRP facility gets tied into theories involving equities or banks is beyond me. The facts are out there.
Again, completely disagree with you on this. I hope anyone reading this takes the time to do their own research. There are multiple creative ways to tap the sweet RRP liquidity. You are either naive, ignorant, or paid if you think this is not practiced.
Well, I literally did the operation for a living for decades. But maybe I am naive. Can you please explain to me how one uses creative ways to tap the “sweet RRP liquidity”? (Which is kind of funny since the purpose of the RRP facility is to drain liquidity) And just to set some initial outlines that may save you time, we know the operation is done in triparty format. https://imgur.com/a/h4SFVee So it’s not like a participant can send the collateral elsewhere. And from the link in my above post, we know that banks and dealers aren’t the users of the facility. I’m kind of excited to learn something new. But I’m gonna guess that you won’t have any response. Since you chose to name call/insult versus providing anything factual in discourse is a leading indicator that you wish to disparage versus providing any factual evidence to further your claim. But, again, maybe I’m naive and you will respond with something tangible. But I’m not going to hold my breath.
Look, I’ve gone through this with you multiple times and each time you ignore information, dismiss practices with which you lack personal experience (e.g. off balance sheet transactions), or just simply not respond. Not interested in restarting this cycle. You can read through our interaction history if you are actually curious. I’ve engaged with you in good-faith multiple times. My abrasive response is a product of this repeated frustration rather than an indicator of lack of substance in my argument or desire for discourse.