Single-Tranche Repurchase Agreements

The Single-Tranche Repurchase Agreements

New York Fed: "“On March 7, with spreads between 1-month Treasury repo and 1-month Agency MBS repo having reached as high as 140 basis points, the Desk began to initiate a series of 1-day forward 28-day single-tranche RPs.6 This 28-day RP book grew to $80 billion over the course of the year (Chart 6). These operations were intended to narrow the 1-month repo spread between Treasury and Agency MBS collateral and provide the primary dealers a steady financing source for Agency MBS. In response, the spread eventually narrowed to about 20 basis points, close to historical norms.” (Via Prins)"

Prins: "“In 2009, the Fed offered a total of $80 billion for short-term loans to holders of mortgage-backed securities.'"

Related SourceWatch articles

 * SIGTARP Quarterly Report to Congress July 21, 2009
 * Troubled Asset Relief Program