Telephone: +44 (0)20 7920 9128
Email: [email protected]
Web: www.barbicanconsulting.co.uk
Repo & Collateral Workshop, (One Day)
The course will cover the following:
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
Classic repo
Repo calculations
Securities lending
Legal and documentational issues
Market users & motives
Collateralisation
The advantages & risks of collateralised trades
Practical structures
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:
25th March 2017
Central Banks (CB’s) have the role of maintaining monetary and financial stability, they produce bank notes and supervise banks and insurance companies. Financial stability may require them to act as “Lender of last resort” to commercial banks. In this way, they provide facilities that promote confidence in the banking sector and more widely in the value of money. In many cases they are independent of government however some commentators believe government influences their decisions, not least by having a hand in the appointment of senior central bankers. Several tools are used to conduct policy. These are discussed below.
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.