Financial Times FT.com

How the repo market works

By Cleve Jones, Alistair Gray, Steve Bernard, Cynthia O’Murchu and David Oakley

Published: April 7 2009 18:19 | Last updated: April 15 2009 18:03

The market for so-called repurchase agreements may seem like an obscure area of finance, but it plays a crucial role in allowing financial companies to secure short-term funding.

At its peak, it provided up to a third of the total funding for some banks – including Bear Stearns and Lehman Brothers.

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