Why would two parties want to participate in a process as antiquated as the repo market? Because it ultimately benefits them. Financial firms with large pools of cash would prefer to not just let that money sit around — it doesn’t collect interest, meaning it doesn’t make any money. On the other side, it allows financial institutions to borrow cheaply to fund short-term needs. There’s also (typically) not much risk involved for either parties.<br /><br />Experts estimate that around $2 trillion to $4 trillion of debt are financed here each day, meaning it’s vital to the overall functioning of the financial system. The cash that institutions receive goes toward funding daily operations.<br /><br />Experts have offered up a wide variety of analogies meant to explain how the process works. Some refer to it as the plumbing of the financial system, while others call it the market’s beating heart.<br /><br />This is not an investment CHANNEL !DO YOUR OWN RESEARCH !<br />Add me on skype come on the show ! mikemartins1980<br /><br />#repo #hongkong #mikeinthenight<br /><br />-~-~~-~~~-~~-~-<br />Please watch: "Mike in The Night ! - The Great Reset - #mikeinthenight #talkshow #Thegreatreset" <br /><a href="https://www.youtube.com/watch?v=D3SCIZ0zge4" target="_blank" rel="nofollow">https://www.youtube.com/watch?v=D3SCIZ0zge4</a><br />-~-~~-~~~-~~-~-<br />...<br /><a href="https://www.youtube.com/watch?v=1dWEnM0WObM" target="_blank" rel="nofollow">https://www.youtube.com/watch?v=1dWEnM0WObM</a>