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The world rocked by Euro$ collateral; Italy, Eurobonds, maybe the '22 equivalent of "toxic waste."

Eurodollar University

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Eurodollar University - Is There a Collateral Problem?

Eurodollar University: We have a major collateral problem. There's too much cash for a limited amount of collateral available borrowers, Repo Fails skyrocket to their most in almost six years and still half a trillion in the first week of October. Italian bonds make up a huge proportion of Euro-denominated repo but also maybe collateral backing US Dollar transactions. The market is saying to all those who've been putting up Italian bonds as the starting point for repo, I need more collateral.

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