Insights

Centrally cleared repo market brief

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Through innovative and flexible cash investment and financing solutions, we provide both our custody and third-party clients access to the Fixed Income Clearing Corporation (FICC) sponsored repo platform.

Given the interconnectivity between repo markets, monetary policy and macroeconomic trends, we want to help you stay up to date on what’s happening in the market with a specific focus on the rapidly growing sponsored segment. With views on recent market trends and what to expect in the future, our quarterly briefs give you the insight you need to unlock the benefits of centrally cleared repo.

January 2025

Highlights from this quarter

  • Significant cash (money market fund) inflows continued as the Fed’s transition to easing has unfolded more slowly than originally expected.
  • FICC Sponsored activity continues to hit record highs, accelerated by year-end funding pressures – although growth rates have cooled somewhat from their volatility-driven Q3 peaks.
  • The Fed cut rates twice this quarter (50 bps total) but overall sentiment for ’25 activity shifted hawkish as inflation remains persistent.
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