The Fed may enter into reverse repos - normally the domain of the 18 primary dealers - with the...

|By:, SA News Editor

The Fed may enter into reverse repos - normally the domain of the 18 primary dealers - with the $2.5T money-market mutual fund business as part of its plan to drain liquidity from the financial system. The Fed would pledge mortgage-backed securities and Treasurys it bought as collateral for short-term loans from money market funds.