Talk:Repurchase agreement/Archives/2013

Latest comment: 10 years ago by 213.1.240.149 in topic Recharacterisation risk

Reference should be made to rehypothecation

Rehypothecation is often accomplished using repo trades and has important implications for the money supply, the shadow banking system, and the financial system generally. Reference to rehypothecation is a logical extension of this article. Currently http://en.wikipedia.org/wiki/Rehypothecation#Rehypothecation is redirected to http://en.wikipedia.org/wiki/Hypothecation which is linked to this current article. — Preceding unsigned comment added by Thisisdavid (talkcontribs) 04:45, 24 May 2013 (UTC)

To clarify, it's repos that are often accomplished by rehypothecated collateral. You're right it's worth mentioning, so I added it to the risk section. It probably deserves its own subsection if anyone wants to take the time to write it. FeydHuxtable (talk) 11:21, 27 May 2013 (UTC)

floating or fixed rate

Are term repos typically executed at a fixed rate, or does the rate float? Uucp (talk) 21:47, 22 October 2008 (UTC)

Both. Short term repios are typically fixed but I have seen long term repos linked to LIBOR. 213.1.240.149 (talk) 19:50, 1 November 2013 (UTC)

Recharacterisation risk

Being a risk manager rather than a lawyer I'm not 100% sure of the detail but I understand this risk is quite key to the fundamental way that repos are structured and hence the treatment in a bankruptcy estate of the collateral. The "recharacterisation" in question being the legal treatment determined to be that of a secured loan rather than an outright sale with an independent purchase. 213.1.240.149 (talk) 19:52, 1 November 2013 (UTC)