Repo lines

Based on the most helpful WSO content, it seems that banks are generally conservative when it comes to repo lines. They tend to rely on low cost, core deposits to fund growth and keep pure liquidity only enough to keep examiners off them. Most of their liquidity is kept off-balance sheet. This conservative approach means they don't need to sacrifice credit quality for yield as their earnings are strong.

In terms of the current economic climate, there's a sense that we might be in for a pull back, but it's unclear what that will look like. Commodity prices are dropping and if we hit an Ag and a Commercial / Real Estate pull back, it could lead to choppy waters.

However, it's also worth noting that many in acquisitions are being very cautious right now, with money socked away for potential dips. This could suggest that they're not overly concerned about the value of collateral on repo lines at the moment.

Remember, it's always a good idea to keep an eye on macro-level trends, such as people moving from rural areas to dense urban areas. As long as this demand keeps up, real estate should do okay.

But hey, I'm just a monkey! Always do your own due diligence and consult with a professional if you're unsure.

Sources: Q&A: Non-Bank Commercial Lending, Looming Liquidity Crisis?, https://www.wallstreetoasis.com/forum/investment-banking/how-to-position-for-a-recession?customgpt=1, 1st Year Macro HF Analyst: My Macro Framework