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Training Courses > Repo & Collateral

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Repo & Collateral Workshop, (One Day)

Enquire or book this course

The course will cover the following:

  • A full explanation of the mechanics of buy/sell backs & classic repo
  • An introduction to the terminology used in repo markets
  • An explanation of the risks associated with repo transactions
  • Defining collateral
  • Risk mitigating techniques
  • Problems associated with collateral management
  • Practical structures

Training will be in a workshop format. This will include a mixture of presentation and case study material. The course is designed for up to ten staff.

Below is a summary of the workshop. The content has been placed in a logical sequence and addresses the products, mechanics, methodologies, practical uses and risks.


Buy/Sell transactions

  • Review of mechanics
  • Cash flows
  • Calculations

Classic repo

  • Market size growth
  • Participants
  • Review of mechanics
  • Market conventions
  • Cash flows
  • Calculations

Repo calculations

  • Interest basis & conventions
  • Accrued interest
  • General collateral
  • Special collateral
  • Haircuts
  • Margin calls
  • Acceptable collateral & substitution
  • Early termination & close out

Securities lending

  • Comparison with repo
  • Application

Legal and documentational issues

  • Legal framework
  • PSA-ISMA Master Agreement


Market users & motives

  • Securities dealers
  • Bank treasuries
  • Corporate treasuries
  • Fund & money managers
  • Central banks


  • Definition of collateral
  • The relative merits of collateral
  • The types of trade that can be collateralised
  • Why there is growth in collateralisation

The advantages & risks of collateralised trades

  • Mitigation of credit risk
  • Correlation risk
  • Tracking, valuation & calling collateral
  • Return on capital
  • Influence on bid/offer spreads

Practical structures

  • Revaluation method
  • Break clauses
  • Add-ons
  • Third party credit support

End of workshop & review

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