Hello, fellow Rebel Capitals. Hope you're well. So we've got big news in the repo market.

We haven't seen anything like this since, you guessed it, 2019, more specifically September of 2019 when we had that huge blow up in the repo market

where Jerome Powell had to come in and start doing quantitative easing once again.

So the question is, what's going on and what is Jerome Powell going to do about it,

if anything? And then why is it it happening I think that's probably the biggest

question why on earth are we seeing these huge spikes in repo rates not spiking to the

level that we saw in September of 2019 that was 10% but they are

spiking to the greatest degree to which we have seen since then and that

includes the banking crisis of March 2023.

Let's get right into the data and check it out, guys.

This is a chart from the New York Fed.

And this actually is a really cool interactive chart. I got to give him a quick hat tip there.

So just for you who, just for the people that might be new to the channel, repo transaction is just simply you have collateral, you want to borrow money and so you say, hey, bank or financial institution, I will pledge this Treasury and for you to give me money and then we'll just swap back in three days or overnight so we'll just swap back tomorrow.

It's very short-term funding, dollar funding market and what's interesting is, especially

with this sofa rate, which is what we're going to look at right now.

It's just backed by treasuries.

So why if it's backed by treasuries,

would the interest rate spike?

This is what we really have to think through. And in order to do that, we've got to go back in time and say, well, when has it spiked in the past?

Okay, starting off right here, this is straight from the Fed's website.

The secured overnight financing rate, Sopher, and Sopher is based on what's happening in the repo market.

That's why we're focusing on repo, but then this specific chart is

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