Eurodollar University OMG! You Won’t Believe What Just Happened in the Repo Market
Nov 27, 2025
The resurgence of the repo market takes center stage, highlighting its importance as we approach the holidays. Tensions rise in the hedge fund and private credit landscapes, revealing vulnerabilities tied to questionable rating practices. Recent Fed borrowing raises eyebrows, as does the shift in the yield curve, signaling potential deflation. The discussion dives into the tug-of-war between banks and shadow banks, emphasizing the implications of ratings arbitrage. Join in for a fascinating exploration of these financial intricacies!
AI Snips
Chapters
Transcript
Episode notes
Repo Tightness Is Recurring Not One-Off
- Repo stress never left; it simply became less visible in mid-month lulls and now reappears around holidays and month-ends.
- Jeff Snider links renewed repo tightness to recurring eurodollar mechanics rather than a one-off panic.
Bull Steepening Was A Leading Signal
- The yield curve has been bull steepening since February, serving as a leading indicator missed by mainstream narratives.
- Jeff Snider argues the curve signaled deflationary pressures months before markets acknowledged them.
Copper-to-Gold Flags Deflationary Risk
- The copper-to-gold ratio sits near record lows, signaling a strong deflationary outlook and limited upside.
- Snider treats this ratio as a validated long-run indicator of downside-heavy expectations.