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An escalating series of monetary tremors still shaking the eurodollar's world.

Eurodollar University

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The Importance of Deposits in Money Markets

The answer has always been repo and collateral, these wholesale markets. But repo isn't a single marketplace either. Deposits migrate, they go to money market funds, therefore they become available in repo. Then something happens to block banks from being able to recirculate or re-borrow those funds back in wholesale. So that's evidence for us that this part of the theory is happening.

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