Repo

RECENT NEWS
The Hindu Business Line  Jun 13  Comment 
Dims prospects for any RBI repo rate in August
The Hindu Business Line  Jun 7  Comment 
Following are the highlights of RBI’s second bi-monthly monetary policy statement, 2016-17 Repo rate unchanged at 6.50 per cent, Reverse Repo at 6% * Cash reserve ratio or CRR unchanged at 4% M...
Reuters  Jun 7  Comment 
The Reserve Bank of India (RBI) kept its policy interest rate unchanged at a five-year low of 6.50 percent on Tuesday, while signalling the prospect of another cut later this year if monsoon rains dampen upward pressure on food prices.
The Economic Times  Jun 7  Comment 
In line with expectations, RBI has kept the interest rates unchanged at its policy review. The repo rate stands at 6.5%, while CRR has been retained at 4%.
Mondo Visione  Jun 6  Comment 
Moscow Exchange announces the launch of new Money Market products. Shares are now eligible for the general collateral certificate (GCC) repo pool; A separate pool has been created for Russian federal government bonds (OFZs), in addition...
The Hindu Business Line  Jun 6  Comment 
Analysts expect the Reserve Bank of India to keep the repo rate on hold at its monetary policy meeting on Tuesday. The central bank is also likely to be cautious due to the recent rise in the headlin...
Reuters  May 24  Comment 
* Synopsys will receive an initial share delivery of approximately 2.0 million shares
Clusterstock  May 10  Comment 
NEW YORK (Reuters) - The Federal Reserve on Tuesday awarded $31.04 billion of one-day, fixed-rate reverse repurchase agreements to 24 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. On Monday, the Fed allotted...
Clusterstock  May 9  Comment 
NEW YORK (Reuters) - The Federal Reserve on Monday awarded $23.24 billion of one-day, fixed-rate reverse repurchase agreements to 17 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. On Friday, the Fed allotted...
Mondo Visione  May 5  Comment 
In April 2016, trading volumes of repo with the CCP reached RUB 13.3 trln, a record since its launch in February 2013. The proportion of repo turnover cleared across the CCP accounted for 62% of the total repo market. The average daily trading...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Repurchase agreements, or repos, are transactions in which a borrower "sells" securities to a lender and agrees to purchase it back for at a specified price on a later date. Most repos are overnight transactions between financial institutions and are primarily used in money markets.

In effect, a repo is a secured loan since the lender gets a collateral for the cash being lent out -- the only difference is that the ownership of the collateral is transferred in the case of repos, whereas under a loan the borrower retains ownership of the collateral. The difference between the selling price and the repurchase price is the effective interest in these transaction.

Rates on repo are different from LIBOR rates, since repos are considered a secured loan whereas the LIBOR is used for unsecured interbank lending.

The US repo market is estimated to be around $4.5 trillion in 2008.[1]

Uses of Repo

Securities dealers are primary users of overnight repos. In order to meet liquidity requirements, they enter into these agreements with short-term investors such as money market funds or other investors who need certain securities for a short-term. Repos are used to finance long positions, borrow money to fund speculative investments, and cover short positions in securities. The Federal Reserve also uses repos for open-market operations where they add or decrease reserves to the banking system by trading in US Treasury securities.

Although repo transactions are backed by a collateral, i.e. the lender can sell the securities to redeem the cash, counter-party risks exists. Specifically, the other party may go bankrupt and not repurchase the securities.

References

  1. WSJ Online, retrieved October 31, 2008

http://www.bestcashloans.org.uk/

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki