Money Market Fund Investment Holdings Of Repos By Counterparty Type


Transaction volume is an indicator of market liquidity. These charts present insights into volumes across various short-term funding markets.

Money market fund investment holdings of repos by counterparty type

Aggregate value of money market investment fund holdings of repos by counterparty type

Skip the Chart

Money market funds are a type of mutual fund used for cash management by institutional and retail investors. As a group, these funds are the largest cash lenders in short-term funding markets. Money market funds provide liquidity to the markets. This liquidity allows issuers of short-term debt securities, such as corporations and governments, to roll over their financing.

This chart shows the aggregate value of money market fund holdings of repurchase agreements (repo) by counterparty type. Participation in the Federal Reserve's reverse repurchase agreement (RRP) facility is shown as repos with the Federal Reserve. Investments in sponsored repos, with the counterparty as the Fixed Income Clearing Corporation (FICC), are shown as repos cleared by FICC. Repos with financial institutions (excluding FICC) are shown in aggregate as repos with either U.S. or foreign financial institutions. Investments in direct repos without a financial institution counterparty are reported in aggregate as repos with other counterparties.

A shift in the composition of money market funds' repo counterparties indicates a change in the structure of the repo market. The mirror-image volatility in the series for repos with foreign financial institutions and the series for repos with the Federal Reserve shows quarter-end dynamics in short-term funding markets. Foreign financial institutions reduce their use of repo funding at quarter-ends to improve their balance sheet ratios in regulatory filings, a practice called window dressing. The withdrawal of these foreign financial institutions from repo markets puts downward pressure on interest rates by reducing the number of eligible counterparties to which money market funds can lend. The Federal Reserve reduces this downward pressure by accepting repo investments from money market funds through its RRP facility, effectively putting a floor under interest rates in the repo market.

The notable increase in repos cleared by FICC since 2017 reflects the growth of sponsored repo. In sponsored repo, a FICC clearing member can sponsor other firms' access to the FICC DVP Service.

Series Used

General Disclaimer

This OFR monitor is presented solely for informative purposes and should not be relied upon for financial decisions; it is not intended to provide any investment or financial advice. If you have any specific questions about any financial or other matter please consult an appropriately qualified professional. The OFR makes no warranty, express or implied, nor assumes any legal liability or responsibility for the accuracy, completeness, reliability, and usefulness of any information that is available through this website, nor represents that its use would not infringe on any privately owned rights.

Disclaimer Regarding Non-OFR Data and Information

For convenience and informational purposes only, the OFR may provide links and references to nongovernment sites. These sites may contain information that is copyrighted with restrictions on reuse. Permission to use copyrighted materials must be obtained from the original source and cannot be obtained from the OFR or from the U.S. Treasury Department. The OFR is not responsible for the content of external websites linked to or referenced from this site or from the OFR web server. The U.S. government, the U.S. Treasury Department, the Financial Stability Oversight Council, and the OFR neither endorse the data, information, content, materials, opinions, advice, statements, offers, products, services, presentation, or accuracy, nor make any warranty, express or implied, regarding these external websites. Please note that neither the U.S. Treasury Department nor the OFR controls, and cannot guarantee, the relevance, timeliness, or accuracy of third-party content or other materials. Users should be aware that when they select a link on this OFR website to an external website, they are leaving the OFR site.

Suggested Citation

Office of Financial Research, “OFR Short-term Funding Monitor,” refreshed daily, (accessed ).