Business & Finance
Europe’s Bond Market Turbulence Puts ECB Repo Funding Into Focus
Key Points
Europe’s Bond Market Turbulence Puts ECB Repo Funding Into Focus Turbulence across Europe’s bonds is sparking debate over the tools policymakers use to keep markets functioning in the event of a broader financial crisis. Some analysts are honing in on the European Central Bank’s repo program, where banks receive cash in exchange for collateral. While not conceived as a crisis mechanism, it’s treated as an important source of liquidity should conditions tighten further.
Europe’s Bond Market Turbulence Puts ECB Repo Funding Into Focus
Turbulence across Europe’s bonds is sparking debate over the tools policymakers use to keep markets functioning in the event of a broader financial crisis.
Some analysts are honing in on the European Central Bank’s repo program, where banks receive cash in exchange for collateral. While not conceived as a crisis mechanism, it’s treated as an important source of liquidity should conditions tighten further.