Vulnerabilities in Government Bond-backed Repo Markets

2026

Open publication workspace · Sign in to read the full PDF.

AI-generated summary

1) This report assesses critical vulnerabilities in government bond-backed repo markets, which are vital for financial system liquidity and stability, and highlights potential risks that could amplify during times of stress.

2) * Explores the structure, participants, and functioning of government bond-backed repo markets globally.
* Identifies key structural vulnerabilities, including leverage, concentration, and interlinkages, and their potential for contagion.
* Outlines metrics and data challenges for monitoring these vulnerabilities and enhancing surveillance capabilities.

3) Repo markets, government bonds, financial stability, leverage, contagion

Check the original publication for accuracy and context.