Sub-navigation:


Join Mailing List

For regular updates via email enter your details below:

Reverse repo

Print Preview Send to a Friend Share

Published: 22nd February 2010 by William Webster

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:

Buy the full article now for just £1.95 + VAT

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 ViewReverse stress testing 95% relevant

20th August 2010

What is reverse stress testing? It is the process of uncovering events that, should they occur, have the potential to make your business unviable. Such events can cover credit, market and liquidity risk. It's important to remember that business failure occurs before you run out of capital. It's when counterparties are unwilling to deal with you.


Payment RequiredRepo risks 93% relevant

6th February 2010

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:


Free to ViewTraining Courses > Repo & Collateral 92% relevant