‘This Isn’t Whatever-It-Takes’: Analyst Who Called Funding Squeeze Not Blown Away By Fed’s Longer-Term Repos

Late last month, BofA's Mark Cabana sounded a cautious tone on what he's calling a “combustible cocktail” that may create the conditions for another squeeze in short-term funding markets at the end of the year. Specifically, he's worried about reserve shortage and dealer intermediation constraints related to GSIB. Cabana, you're reminded, repeatedly warned that an episode like that which rippled across the repo market during the week of September 16 was likely imminent, prior to it actuall