8/20/2013

The repurchase market was $4.6 trillion daily outstanding last month, a 35% drop from its peak during the first quarter of 2008, as the possibility of increased regulation lessened dealers' demand for inventory. "During the market sell-off over the past few months, those rules, a lot of which are just proposed or not yet taken effect, already impacted dealers' willingness to take on inventory of Treasurys, investment grade corporates to emerging market debt," said Gregory Whiteley of DoubleLine Capital. "That exacerbated the intensity of the sell-off."

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