by Darrell Duffie and Anil Kashyap
The possibility of a US government default or credit rating downgrade has everyone asking what either would mean. One source of concern is the potential impact on the use of treasury securities as collateral. The market where this matters most is the “repo market”. Darrell Duffie and Anil Kashyap explain the risks to the repo market in this note published by the Financial Times.
