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7. What are the typical maturities of repos?
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Traditionally, repos have been short-term instruments and the bulk of liquidity is still relatively short-term. The US repo market is mainly overnight, but the maturity distribution of the European market is longer and has been lengthening. This was happening before the crisis that erupted in 2007 but has since accelerated, partly in response to regulatory pressure on banks to lengthen the duration of liabilities. The ICMA’s semi-annual survey of the European repo market shows that the proportion of short-dated repos (terms of one month or less) have decreased from some two-thirds of the outstanding value of repos to about half. In addition, forward repos, which often start one or more months in the future, account for about 8% of the survey. Repo with only one day to maturity is less than 20%. For more information, see the results of the ICMA’s surveys.


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