AuthorTopic: 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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