Description

Understand repurchase agreements (repos) and their role in financial markets. The general mechanics of repos, the distinction between repos and reverse repos, and the motivations of each party involved. Explore the difference between general collateral and specific repos, learn what it means when 'a bond goes special,' and understand the key features of bilateral and tri-party repos.

Learning Objectives

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1. Identify the role of repurchase agreements (repos) and their role in financial markets.
2. Distinguish between repos and reverse repos.
3. Determine the motivations of each party involved in repos.
4. Differentiate between general collateral and specific repos.
5. Recall what it means when 'a bond goes special,' and understand the key features of bilateral and tri-party repos.