MF Global Repo-to-Maturity trade dissected

Discussion in 'Wall St. News' started by buzzy2, Nov 1, 2011.

  1. Yes, maybe you don't have to borrow the lot daily, but that's the idea. Now take this story to a logical extreme. It's not that it becomes more costly for you to borrow, but rather that you simply can't borrow, because no counterparty is willing to lend you cash, even overnight. To be sure, this is just my understanding of it, so, again, treat with a pinch of salt.
    Tasty European peripheral paper.
     
    #31     Nov 2, 2011