The Federal Reserve’s Standing Repo Facility (SRF) has evolved to operate without an aggregate cap, allowing for unlimited liquidity based on eligibility and collateral. Usage increased significantly in late-2025, primarily under stress conditions, yet the SRF remains a backstop for funding, emphasizing the importance of collateral management in liquidity strategies. … More SRF & Repo Markets: What Late-2025 Taught Us About Liquidity Backstops

This week, the Federal Reserve announced $40 billion in Treasury bill purchases to enhance liquidity and relieve pressure in short-term funding markets, while framing it as a technical measure. Concurrently, the Fed cut its policy rate by 25 bps to 3.5–3.75%, emphasizing the importance of market functioning as year-end approaches. … More Liquidity, Market Functioning, and Policy Signals — A Notable Week for Funding Markets

The health of U.S. consumers is increasingly complex due to the rise of private credit, which is set to grow to nearly $140 billion in lending. This shift complicates traditional assessments, as banks focus on higher-credit borrowers, causing fragmentation and uncertainty in consumer spending patterns and credit availability. … More The Consumer Credit Picture Is Getting Harder to See

Investors added about US$105 billion to U.S. money-market funds recently, indicating a preference for safe assets ahead of the Fed’s decisions. Bank deposits remain strong at approximately US$18.53 trillion. The emergence of stablecoins and new blockchain-based banking models signifies a shift in liquidity and funding dynamics leading up to 2026. … More Liquidity, Deposits & the Rise of Digital-Native Banking — What December 2025 Is Showing Us

In the third quarter, the banking sector experienced improved net interest margins, the highest since 2019. Asset repricing, stable credit spreads, and a shift in asset mixes contributed to this. Deposit costs showed signs of stabilization, with increased deposit fees noted. Future margins will depend on policy easing and market dynamics. … More Loan Yields Push Margins to New Highs — Even as Funding Headwinds Persist