Fitch's Inside Credit: Repo Risk in Focus

Business News
Print
NEW YORK--(BUSINESS WIRE)--This week's Fitch Ratings Inside Credit newsletter focuses on the fire sale risks that the tri-party repo market poses to corporate bonds. A deep dive into repo collateral shows that several characteristics of the underlying corporate bonds could amplify price dislocation during periods of market turmoil. "Maturity mismatches, low trading frequency and `wrong way' risk could compound market volatility in the event of forced sales of collateral," says Robert Grossman,

imageimage