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Soaring US Equity Funding Costs Risk Spilling Over to Repo Rates

US equity financing needs have been building up and risk crowding out capacity in bank dealers’ balance sheets, which in turn could boost short-term interest rates even amid limited quarter-end pressures.

This article was originally published by Bloomberg Markets and is republished here under license.

US equity financing needs have been building up and risk crowding out capacity in bank dealers’ balance sheets, which in turn could boost short-term interest rates even amid limited quarter-end pressures.

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