
October 19, 2023
Reverse Repo: A Safe Haven for Cash Amid Financial Turbulence
Attractive yields and safety are two reasons some corporates are investing directly in reverse repos. Turmoil in the banking sector earlier this year sent shockwaves through corporate treasuries, triggering widespread reviews of credit risk policies and changes in how cash investment managers think about counterparty limits for unsecured exposure to banks. As these managers continue to seek both safety and healthy yields, reverse repurchase agreements, also known as reverse repos, are drawing increased attention globally. And no wonder: they offer corporates an additional layer…