These new counterparties were major investors of cash in overnight markets and had capacity to facilitate the «draining» of substantial reserve balances, if offered attractive term investments with the Federal Reserve. (newyorkfed.org)
The overnight market fall in the U.S. in an opportunity to buy if «you've been sitting on cash,» says Jeffrey Kleintop of Charles Schwab. (cnbc.com)
So it encourages banks to seek loans elsewhere by offering money at a higher interest rate than can be found in what is known as the overnight market. (moneysense.ca)