The Fed's New Repo Tool Could Affect Millions of U.S. Home Loans
Here's why
A new player in the repo market.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
RRP. IOER. MBS. EEK!
The alphabet soup of financial acronyms is about to get more crowded with the expansion of the Fed's overnight reverse repo agreements (known as overnight RRPs). While the dynamics here are complicated, they bear watching since they could have implications for the wider financial system and even millions of American mortgages.