Here is how Repo facility works. Is not free money btw:
A Repo (Repurchase Agreement) Facility, often run by central banks like the Federal Reserve (Fed) or Reserve Bank of Australia (RBA), provides short-term liquidity to financial markets by allowing eligible institutions to temporarily sell high-quality securities (like government bonds) for cash, agreeing to buy them back later at a slightly higher price, with the price difference acting as interest.
Here is how Repo facility works. Is not free money btw:
85% of the collateral was mortgage backed securities