Repo loans are secured with US Treasuries and Agency Debt, which are priced by market participants as “risk-free” assets due to the creditworthiness of the US G

Repo loans are secured with US Treasuries and Agency Debt, which are priced by market participants as “risk-free” assets due to the creditworthiness of the US Government. Treasuries are the most highly liquid securities in the world. There are no toxic assets involved in the repo market.