The Financial Stability Coordination Council has been actively looking at secondary market asset prices for signs about the market and their potential systemic risk concern. We have had active discussions about our yield curve and its incentive structure as market condition evolve, both in the Philippines and in established offshore markets.
The repo market Repos – transactions that involve selling a security while concurrently committing to repurchasing it at a later date for the sale price plus interest – are the economic equivalent of secured loans. Investment dealers and banks use the repo market as a source of low-cost secured financing to fund long positions and hedge short positions on securities.