Funds: Market Dislocation

funds: We wanted to take advantage of this temporary market dislocation, according to Market Watch. That was our No.1 focus, said Eric Souza, senior portfolio manager at SVB Asset Management, in an interview. Investors wielding spare cash said this week's troubles in the overnight repo market presented one of those rare opportunities to make hay by lending out as much funds as they could to liquidity-starved traders left scrambling before the Federal Reserve's pair of liquidity injections. When Souza walked onto the trading floor in the early morning hours in San Francisco on Tuesday, he said his team didn't balk when repurchasing rates soared as high as 8%. Feeling this would be a short-term market dislocation, he lent out funds to investors eager to borrow funds through the repo market. The spike in repo rates created havoc for borrowers who use leverage to purchase assets and don't always have enough cash on hand, which can cause a need for repeat, overnight funding. No one was screaming at our desk, we were just locking in at what levels we could, said Souza. (news.financializer.com). As reported in the news.