Welcome to our exchanges at Goldman Sachs markets update for Friday, March 13th.

Each week we sit down with leaders across the firm to get a quick take on the markets.

I'm Jake Seawert and today's guest is Alex Blanchard of our

global market division. Good morning Alex and welcome to the program.

Morning, Jake, thanks for having me. So Alex, just quickly explain your role

here at the firm and who your main clients are.

Yeah, sure. I'm responsible for the firm's global short-term rates and repo business.

You know, we typically interact with large

asset managers and hedge funds as well as large money market funds in the

287 complex.

All right, well, since the repo market's been in the headlines, give me just a quick overview of what's happening in that market in recent weeks.

Yeah, absolutely.

So we saw early signs of pressure over the last couple of weeks and while much of that was it was manifesting itself

and of away from the part of the market that most people had been focused most specifically the overnight repo market.

I think there was a period of time when perhaps the observers might say that things were all calm,

but in reality things were far from calm.

You know, essentially what we've been seeing is an increase in the cost of financing

both in repo markets for liquid securities as well as in the commercial paper market and

as well as in the offshore financing market

notably the cross- currency basis market. If I just just try and

unpack that you know essentially what what happened was was a combination of

factors first being as the market

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