Windjam

Our firm uses repo's to park cash overnight, and receive the overnight repo rate. It's a little better than the Rfr, but not much. Basically all extra cash is swept into an account and invested in the repos. we receive treasuries or agency securities for collateral.

We lend the bank our extra cash wich is added to their requred reserves, we get the overnight repor rate for this loan, which is backed by their colateral. The bank we loan to is the borrower of these funds.

I've never seen an overnight repo issued by anyone other than a bank (maybe it happens, but I don't think so) I believe the reason they issue repos is to secure cash for their required reserves. We lend the money in order to get a very small spread above the Rfr on our excess cash.