Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/309186 
Year of Publication: 
2024
Series/Report no.: 
Staff Reports No. 1140
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
This paper evaluates the salient forces behind a dealer-intermediary's decision to move a bilateral repo transaction with a customer into central clearing. We provide evidence that dealers turn to sponsored repo on occasions when balance sheet space is scarce, such as when there is a large issuance of Treasury coupon securities and end-of-month dates. We also find that sponsored repo spreads tend to be affected by a range of factors, with the three largest drivers being money market fund assets, a proxy for hedge fund demand for repo funding, and end-of-month dates.
Subjects: 
repo
sponsored services
central clearing
money markets
JEL: 
G12
G23
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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