Re: The Repo Market Time Bomb

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

stan jonas wrote:

>
> Simple supply and demand pressures will move the two rates to either side
> of a clearly defined arbitrage band.. but a good assumption is that G/C
> .. (..if you don't know what this is, you shouldn't talk about repo to
> begin with).trades
> about 5 basis points beneath the effective Fed Funds rate.

I don't know what G/C (government/commercial?) is and I started this thread
on repos.  I personally do not trade, although I think I know a bit about
repos. I employ traders.
But the purpose of participating on a list is to exchange ideas and
information rather than showing off with one-upmanship.  One hopes to learn
as well as to sharpen one's thoughts through being challenged and by
challenging the ideas of others.
It would be more useful if you would identified what "G/C" stands for,
instead of merely using it to buttress your credibility.
I recently asked a top expert on structured finance what a NIMS is and he
did not konw, and it does not lower my respect for him.  (They are "net
interest margin securities".)

Henry C.K. Liu