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- Topic: repo and rev.repos
| Author | Topic: repo and rev.repos |
|---|---|
| fella @2003-07-01 10:03:41 |
under what circumstances would the repurchase price be LESS THAN the purchase price? |
| harry @2003-07-03 18:55:51 |
I think the term is hot collateral which occurs when the specific security is in demand and is scarce to obtain then that situation may occur |
| Pete @2003-07-06 12:27:04 |
it happens when you have to repo in pieces that you need for something else rather than just a cash investment. if you are going to repo a piece of collateral that is in high demand, you actually pay a premium to borrow the piece. That makes your sell back price lower than what you repo'd it in for. |
CFA Discussion Topic: repo and rev.repos
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