Affiliate Repo

The U.S. repurchase agreement (repo) market is a key, short-term funding market, with average daily outstanding positions that exceeded $12.5 trillion in the second half of 2025. New data from the Office of Financial Research reveal that repo in which both counterparties are affiliated with the same parent financial institution represent a substantial fraction of the entire U.S. repo market, approximately $2.1 trillion (16.6%). Because affiliate transactions reflect internal liquidity management rather than arm’s length market conditions, their inclusion in aggregate statistics can distort measures used to assess market functioning and financial resilience. Changes in affiliate activity may also signal emerging liquidity pressures within large institutions. This brief summarizes key features of affiliate repo, which are predominantly conducted by global systemically important banks in the non-centrally cleared bilateral repo segment. Affiliate repo is more likely to use U.S. Treasuries as collateral, to involve domestic counterparties and, on average, to employ contracts that are shorter in term than those for non-affiliate repo. Although affiliate rates are similar to non-affiliate rates (except in the tri-party segment), transaction-level haircuts are significantly lower.