Sub-navigation:


Join Mailing List

For regular updates via email enter your details below:

Repo risks

Print Preview Send to a Friend Share

Published: 6th February 2010 by William Webster

Repo trades involve credit risk, market risk, liquidity risk and operational risk the counterparties involved. In the following the term "buyer" refers to the party that receives the collateral at the start of the trade and the term "seller" refers to the party receiving cash at the start of the trade:

Buy the full article now for just £1.95

If you have already purchased this article, login to view it.

Related Documents

Payment RequiredRepo - how it works 100% relevant

15th February 2010

A repo involves two parties. One party, (the seller), gives collateral, normally bonds, to the other party, (the buyer). In return the buyer pays a cash amount to the seller. The cash amount involved is based on the market price of the collateral plus its accrued interest. The seller does a repo, the buyer a reverse repo:


Registration RequiredRepo Training Guide 98% relevant


Free to ViewShort courses>Repo 96% relevant


Free to ViewTraining Courses > Repo & Collateral 92% relevant


Payment Requiredelearning > Repurchase agreements (repo) 84% relevant

Learn about the following: How repo works. The terms used in repo transactions. The repo rate and why it changes. The risks of doing repo. How some risks can be reduced. How repo trades can be used.


Payment RequiredReverse repo 68% relevant

22nd February 2010

There are two parties to a repurchase transaction (repo). The party that provides (sells) the collateral is doing a repo. The party that takes (buys) the collateral is doing a reverse repo. Let's see this in a diagram: