Bloomberg Highlights Viral Acharya’s Research on the Repo Market

Bloomberg featured NYU Stern Professor Viral Acharya’s research in an article about fire sales risk and repo market reforms.

Excerpt from Bloomberg –”A so-called resolution authority for the repo market, to orderly liquidate repurchase agreements and prevent fire sales of underlying assets during periods of financial stress, was proposed as a way to reduce risks in March 2012 by New York University Stern School of Business professors Viral Acharya and T. Sabri Oncu in a paper presented at a Federal Reserve conference in Washington.

Laws and regulations including Dodd-Frank Act and Basel III are focused on systemically important financial companies. What has yet to be fully addressed is systemic risks associated with certain assets and liabilities, such as repurchase agreements, Acharya and Oncu wrote in the report.

Read the entire article.

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