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Fearing Another Repo Spike, Janus Build Up Its Cash Pile

  • Liquidity crunch will add to funding-market strains: Maroutsos
  • ETF manager looks to be ‘cash-rich’ to pounce on any turmoil
Photographer: Andrew Harrer/Bloomberg

Janus Henderson Group Plc is bracing for a repeat of September’s repo-market turmoil to play out in the final weeks of 2019.

Nick Maroutsos, the firm’s global bonds co-head, expects that repo rates will “spike” as typical year-end funding strains emerge. The Fed has been injecting liquidity since Sept. 17 to calm money markets. But Maroutsos warned that may not be sufficient as banks pare back lending heading into the turn of the year as they shore up balance sheets to meet regulatory requirements.