Monetary Policy & Inflation | Rates
The repo market flash crash certainly raised awareness of the fragile nature of money markets and market plumbing. Yet curiously no one seems to be concerned that the repo market is slated to be the new money market benchmark in coming years if as expected LIBOR is phased out.
Then again, most people outside of the insular money market world are hardly aware of this. And regulators and market participants are so far down the road with this project that there is little chance of its being derailed at this point. But it might not be a cut-and-dry closed issue either. Ultimately markets will have the final say.
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