Eurodollar University WARNING: Something Big Just Broke in Repo Markets
Dec 30, 2025
Repo fails have surged to a staggering $573 billion, highlighting severe cash and collateral issues. This spike, occurring in mid-December, indicates rising anxiety in credit markets. The unraveling of Tricolor shows systemic failures in underwriting, unveiled by a keen junior analyst. Additionally, dealers are hoarding coupons to mitigate borrowing costs amid tightening collateral. The discussion questions media narratives blaming the Fed, emphasizing the complexity of credit systems and frauds that further complicate market dynamics.
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Repo Fails Signal Collateral Strain
- Repo fails surged to the highest weekly total since 2022, signaling severe collateral strains in mid-December.
- Jeff Snider links this to a broader tightening in money and credit, not just central bank policy.
Mid-December Repo Spike Was Massive
- The December 17 week saw repo fails jump to $573 billion, the most since the 2022 collateral crisis.
- Snider emphasizes this reflects restricted collateral flow and rising market risk aversion across the eurodollar system.
Study Credit Cycles And Distressed Opportunities
- If you're a serious investor, study credit market signals and consider distressed credit opportunities.
- Jeff Snider recommends attending Eurodollar University Live to learn from experts about cycles and opportunities.