Infographics: Key Rates & Spreads In the Modern Repo Market

Summary

The episode breaks down the modern repo market by illustrating how overnight rates and dealer spreads vary across different repo segments—triparty, GCF, DVP, and NCCBR. It explains that dealers profit by maintaining a positive spread between the cost of borrowing cash and the revenue from lending it, and shows that both rates and spreads rise as one moves up the hierarchy. The discussion includes a detailed infographic that visualizes these dynamics, serving as a primer for the upcoming Part II of the series on the Fed’s new target and its impact on money markets.