In October 2024, the International Monetary Fund flagged concerns about banks providing leverage for funds to buy SRTs, warning of circular credit risk in the banking system.

Though the IMF’s report did not highlight repo specifically, its influential Global Financial Stability Report catalysed a narrative shift among regulators, resulting in a crackdown on repo financing of SRTs, banks withdrawing from the market, issuers limiting repo provisions and questions over alternative structures to lever SRTs.