Unchained · Friday, July 10, 2026
Mateo Pidalphi, CEO and co-founder of Peredo, discussed the September 2019 repo market stress, during which overnight repo rates spiked to over 20%. He explained that the Federal Reserve had to intervene with a significant cash injection to stabilize the market. Pidalphi attributed the crisis partly to banks being reluctant to lend excess reserves due to balance sheet constraints and settlement timing issues.
“What happened is that the overnight repo rates in the, uh, US spiked from around 2% to over 20% in a single day, pretty much.”
“So, you know, the Fed had to, uh, intervene with massive cash injection.”
“So partly because of balance sheet constraints and, uh, from post-crisis regulation, partly because of settlement timing.”