WHAT'S NEW?

FINANCIAL MARKET COURSES

Repurchase Agreements (Repos)

A repurchase agreement (or repo) is a money market instrument whereby a borrower sells securities (or some other asset) to another party at a fixed price and agrees to repurchase the securities at an agreed future date and dirty price. Repos are a form of collateralized borrowing. The course shows how the repo process works, how repo interest is calculated, and how haircuts and margins are applied to these transactions.

  • OBJECTIVES

    On completion of this course, you will be able to:

    Define a repurchase transaction and its key features

    Calculate repo interest, haircuts and margins

    List the different types of repo collateral and variants of standard repurchase transactions

  • COURSE OUTLINE

    Topic 1: Features of Repos

    Repos & Reverse Repos

    Uses of Repos

    Financing Long Positions with Repos

    Repos & Interbank Transactions

    Repos & Interbank Interest Rates

    Repo Market Jargon

    Repo Buyers & Sellers

    Repos: Borrowing & Lending

    Topic 2: Repo Calculations

    Clean & Dirty Bond Prices

    Repo Interest

    Haircuts & Margin

    o Haircuts

    o Initial Margin

    • Cash-Driven Repo

    • Securities-Driven Repo

    o Variation Margin

    • Cash-Driven Repo

    • Securities-Driven Repo

    Topic 3: Certificates of Deposit

    Repo Variations

    o Classic (US-Style Repo)

    o Buy/Sell Backs & Sell/Buy Backs

    o Tri/Party Repos

    o Hold-in-Custody Repos

    o Cross-Currency Repos

    Collateral Types

    o General Collateral

    o Special Collateral

  • PREREQUISITE KNOWLEDGE

  • ESTIMATED COMPLETED TIME

    60 Minutes

Next Course

VIEW COURSE

INTERMEDIATE

Support

Accreditations

General: info@intuition.com

Accounts: ar@intuition.com

http://support.intuition.com

Intuition engages with over 30 accreditation bodies to ensure Know-How can be used for CPE credits. If your organization needs CPE from a body not listed below, contact us and we will endeavour to have them included.

© Copyright 2016 by Intuition. All Rights Reserved.