CFA Level I Fixed Income - Repurchase Agreement

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  • Опубликовано: 7 сен 2024
  • This is an excerpt from our comprehensive animation library for CFA Level I candidates. For more materials to help you ace the CFA Level I Exam, head on down to prepnuggets.com.

Комментарии • 14

  • @dees377
    @dees377 3 года назад +3

    I didn't understand repo margin before watching this, thank you!

  • @jzh4950
    @jzh4950 Год назад +1

    this is legit better than kaplan

  • @sinhui6930
    @sinhui6930 3 месяца назад

    Thank you, your video helps me a lot!

  • @salmamarine1694
    @salmamarine1694 7 месяцев назад +1

    Very well explained thanks a lot !

  • @scdvmm
    @scdvmm 2 года назад +1

    That was very clear! Thanks a lot! Can you explain the terms "on money" and "off money" in relation to REPO?

  • @quentinlecomte430
    @quentinlecomte430 3 года назад

    Thank you so much your videos are very great!

  • @tadhashi7220
    @tadhashi7220 2 года назад +2

    Repo margin is also known as haircut. Now I know what my banking colleagues were on about.

  • @L1am97
    @L1am97 3 года назад

    Great video

  • @Rey_B
    @Rey_B 3 года назад

    worth it!

  • @darkmatter4768
    @darkmatter4768 2 года назад +1

    In repurchase agreement ex 1 - 1:47 why did you do (purchase price/selling price)^2 for annual rate- didn't get raised to 2 part? - can anyone help in understanding this?

  • @darkmatter4768
    @darkmatter4768 2 года назад

    Is this the formula for repo rate- (Repurchase Price/selling price *360/n)-1

  • @garygreenberg6846
    @garygreenberg6846 3 года назад

    Ken, Gary Greenberg here. Did you get my emailed request?

  • @dismalscienter5443
    @dismalscienter5443 3 года назад +3

    Good presentation, until you got to reverse repos! One party's repo is not the counterparty's reverse. Repos and reverses are completely different transactions. A repo is a loan of money collateralized by securities (i.e. a collateralized loan). Reverses are a form of (or substitute for) a SECURITIES LENDING transaction (eg. borrowing securities to deliver on a short sale). A reverse repo is a loan of securities collateralized by money. If repos and reverses where the opposite sides of the same transaction, the interest rate would be the same, but repo and reverse interest rates are not the same. Reverse repo rates vary by the specific security the "buyer" is reversing in. 'When a specific security is in big demand (i.e. trading special) reverse repo rates are often negative (i.e. the security is repurchased for less than the original selling price