One aspect of the market that I am confused by is the fact that reverse repos ( now sitting at over 1 trillion) are being utilized so heavily by banks and institutions to essentially hedge against inflation. How, then, at the same time is margin so high in the market? How is it that liquidity is being freely given up for treasury collateral, but at the same time everyone is borrowing on margin to invest? Am I missing something?
Submitted September 01, 2021 at 09:46AM by Robot_Turtlez https://ift.tt/3BuDe9v
