On 4 February 2026, the Financial Stability Board (FSB) published a report on Vulnerabilities in Government Bond-backed Repo Markets.

The report forms part of the FSB’s work programme to enhance resilience in nonbank financial intermediation (NBFI).

The report focuses on the repo markets backed by government bond collateral as this makes up the vast majority of collateral used by market participants. It estimates that approximately $16 trillion in repo backed by government bonds was outstanding at end-2024.

The report identifies several vulnerabilities within repo markets that could pose risks to the broader financial system and this includes that repo markets can facilitate the build-up of leverage in the financial system. It also outlines several measures for authorities to consider in response to these vulnerabilities, including closing data gaps, strengthening surveillance capabilities, and addressing vulnerabilities related to liquidity imbalances and leverage by taking into account the FSB’s recommendations on leverage in NBFI and Global Securities Financing Transactions exercise, as well as other relevant international standards.