In this 2-part module, we describe the mechanics, risks and pricing principles of sale and repurchase agreements, more commonly known as “repos”. We examine classic repo transactions and their numerous permutations, review briefly the standardized documentation for such transactions, explain how different market participants take advantage of repos for different purposes, examine the accounting and regulatory treatment, and comment on a recent fiasco involving accounting manipulation of repos.
target audience:DX1 Traders, risk managers, sales force, financial control and audit
prerequisite required:
– None
prerequisite recommended:
– Bond Fundamentals
Please click below pictures to explore the chapters:
