"September stress in dollar repo markets: passing or structural?" A new report from the Bank for International Settlements is reframing the narrative around the mid-September spike in repo rates. Repo lending has come to rely largely on four banks. Over the past year, these banks have redeployed balance sheets towards collateral and away from excess reserves available to lend via repo. As we have previously highlighted, SOFR pricing is closely linked to repo rates. [BIS]

"Global Money Notes #26 – Countdown to QE4?" On the same note, funding market strains may not be resolved, according to a report out of Credit Suisse during the week. [Credit Suisse]