«The zero per
cent interest rate environment is effectively eliminating the dealer matched - book business and crippling dealer intermediation in the repo market,» said Scott Skyrm, senior vice-president at Newedge, a repo broker dealer.
«It's
interesting after all this time, how our thinking about
interest rates has been shaped by this very, very long
environment of low
interest rates that even an overnight
rate of 1.5 per
cent could look like a big deal,» he said.