Repo Variations
Repo Variations seeks to give a clear explanation of some of the differences between one repo trade and another. These differences may depend on what is driving the trade or on individual agreements signed by those taking part to meet specific needs. They provide a useful flexibility and an opportunity to enhance returns or reduce risk depending on circumstances. In this section we look at:
- At a glance
- The difference between general collateral (GC) trades and 'special' trades and the benefits they offer to the counterparties involved
- Cases where the value of cash and collateral involved in the trade differ and agreements designed to protect both buyer and seller when the value of the collateral fluctuates
- The flexibility to substitute the securities agreed on the trade date with others of the same quality and value and the rights that each party may have to end a repo trade
- A few risk parameters that you need to understand before entering into a repo trade
For more specific information, refer to the sections in the left-hand navigation panel. Our site map also provides an overview of the entire Repo Guide.