Mind The Air Pockets---Soaring Overnight Repo Vs. Flood Of New USTs

Markets have increasingly leaned on shorter-term funding rather than longer-term sources, Pozsar said in a Bloomberg podcast. And part of that is down to the immense growth seen in sponsored repo, which only offers money on an overnight basis.

Money-market exposure to sponsored repo has grown since 2017

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.