Repo Madness Is Global? BIS Warns of Looming EU Repo Problems

"U.S. securities/“repo” finance is clearly a major source of liquidity for the markets as well as the real economy. 

Yet this Bubble Dynamic is undoubtedly global, with international securities finance instrumental to inflating securities and asset markets around the world. 

A Bloomberg article this week referenced a $9.0 TN European “repo” market. There are also large repo markets in Japan and throughout Asia. 

How much finance used to leverage global securities is originating out of the likes of Hong Kong, Singapore and Shanghai - not to mention the Cayman Islands and Luxembourg? How much global “repo” finance has been flowing into U.S. debt markets?

- Source, Wall St for Main St