Finance
Repo Oracle Zoltan Pozsar Expects Even More Turmoil
The Credit Suisse analyst foresaw the recent trouble in the financial system’s plumbing. He says it’s not over.
Zoltan Pozsar
Photographer: Ryan Duffin for Bloomberg BusinessweekThis article is for subscribers only.
In September an often overlooked but vital part of the global financial system short-circuited. It’s called the overnight repurchase agreement, or “repo,” market, and when it seized up, the interest rate that institutional borrowers had to pay for very short-term loans went (briefly) through the roof.
In the aftermath, people in the market sought answers—to understand both what had gone wrong and the risk of it happening again. Many have turned to a Credit Suisse Group AG analyst named Zoltan Pozsar, who predicted the breakdown with almost eerie accuracy in an August research note.