Repurchase Agreements (Repo transactions)| Features, Participants etc | Detailed explanation
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What is Repurchase Agreements ?A
What is Repurchase Agreements ?
A repurchase agreement agreement also called 'repo' is a short term money market agreement in order to purchase those securities back at a higher price in future.
Gap between prices of securities in overnight tenure is known as interest rate.
Under repurchase agreement, the seller of repo is effectively borrowing and the buyer of repo is lending, so the buyer or lender is credited the implicit interest rate in the difference in prices.
Also, an important point the implicit interest in the repurchase agreement is also known by the name of Repo rate, which is equal to the market overnight risk .
Its tenor is from overnight to 30 days.
TIME PERIOD OF REPURCHASE AGREEMENT
very short term from overnight to 30 days.
Or sometimes more than 30 days.
TYPES OF REPURCHASE AGREEMENT
1.Third party Repo
Also known as Tri party repo.
A clearing agent or custodian bank conducted the transactions as a agent.
It is a transaction for these post trade processing is that selection of collateral securities, settlement, custody and management of working of transactions is done by third party which is bank of clearing agent.
2 Specialized delivery repo
3. Held in custody repo
So please see the video, for detailed explanation and completed each and every points in within 10 minutes.
About Soma Sarkar-
I am NTA net and set qualified and I have done M.com with distinction and also I have two years of teaching experience.
Build Career channel help you in learning topics of commerce in a simplest way and A to Z points.
SO,IF YOU WANTS TO APPRECIATE THE EFFORTS OF Build Career, Please provide a like and share this video.
Thank you all.....................
#commerce #NTA #financial_system #UGC
Link of tax classes-#ugc #net #commerce #buildcareer ...
Link ofBanking Awareness-Banking Awareness, Fiscal policy clas...
A repurchase agreement agreement also called 'repo' is a short term money market agreement in order to purchase those securities back at a higher price in future.
Gap between prices of securities in overnight tenure is known as interest rate.
Under repurchase agreement, the seller of repo is effectively borrowing and the buyer of repo is lending, so the buyer or lender is credited the implicit interest rate in the difference in prices.
Also, an important point the implicit interest in the repurchase agreement is also known by the name of Repo rate, which is equal to the market overnight risk .
Its tenor is from overnight to 30 days.
TIME PERIOD OF REPURCHASE AGREEMENT
very short term from overnight to 30 days.
Or sometimes more than 30 days.
TYPES OF REPURCHASE AGREEMENT
1.Third party Repo
Also known as Tri party repo.
A clearing agent or custodian bank conducted the transactions as a agent.
It is a transaction for these post trade processing is that selection of collateral securities, settlement, custody and management of working of transactions is done by third party which is bank of clearing agent.
2 Specialized delivery repo
3. Held in custody repo
So please see the video, for detailed explanation and completed each and every points in within 10 minutes.
About Soma Sarkar-
I am NTA net and set qualified and I have done M.com with distinction and also I have two years of teaching experience.
Build Career channel help you in learning topics of commerce in a simplest way and A to Z points.
SO,IF YOU WANTS TO APPRECIATE THE EFFORTS OF Build Career, Please provide a like and share this video.
Thank you all.....................
#commerce #NTA #financial_system #UGC
Link of tax classes-#ugc #net #commerce #buildcareer ...
Link ofBanking Awareness-Banking Awareness, Fiscal policy clas...
4 سال پیش
در تاریخ 1399/05/03 منتشر شده
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