This course will investigate the features and characteristics of repurchase agreements, a popular money market financing instrument. Look at the difference between the main structures i.e. classic repos, reverse repos and securities lending transactions. Examine the importance of financing in the capital markets. Explore the main forces driving the repo rate. A closer look at the variety of applications is explored.

Objectives

By the end of the program the course participant will be able to:

• Identify the mechanics of a repo
• Describe the features, characteristics and terminology of repos
• Distinguish between general and special collateral
• Identify and execute the main applications:
  • Financing and investing
  • Covering a failed trade
  • Locking in forward rates
  • Yield enhancement
  • Leveraging a portfolio
  • Arbitrage the cheapest to deliver futures contract
• Identify the risk associated with repos
• Identify the Bloomberg pages associated with repos

This course is hands on and focuses heavily on applications. You will benefit from this course if your job function:

• Directly interacts with the repo market
• Supports a repo desk
• Is compliance or examination related