Wall Street Is Buzzing About Repo Rates. Here’s Why.

Investors take for granted that the Federal Reserve controls interest rates. But
a surprisingly lively couple of days in short-term money markets has
meant that the “how” became nearly as important as the “why.” The stress started on Monday in the market for repurchase agreements, or repos. Repos are short-term loans mainly used by banks and hedge funds in their daily bond trading and brokerage businesses.