The temporary transfer of securities or receivables is accompanied by an effective transfer of ownership. From the point of view of the seller, we talk about repo: sale followed by redemption, from the buyer`s point of view, we speak of repo-reverse: purchase followed by resale. The term REPO is the contraction of the Sale and Repurchase Agreement. This is a transaction in which two parties agree simultaneously on two transactions: a sale of cash securities, followed by a forward redemption on a pre-agreed date and at a pre-agreed price. This transaction is called a pension in French (support or retirement). . Delivery Versus Payment (or payment for delivery) . Rest periods usually have a short maturity between one day and one year. The flexibility of maturities is one of the main attractions of the pension and offers many opportunities to invest in liquidity at different maturities.
Its other advantage, of course, is the very low risk associated with collateral credit, which makes it attractive to investors. Hold in Custody (or held on behalf of the client) “The annuity is the transaction, by a corporation, investment fund or debt fund sold in freehold to another corporation, investment fund or mutual debt fund at an agreed price securities, securities or securities (defined by law) and with which the assignor or assignee irrevocably undertakes to recover the securities, securities or effects of the other at an agreed price and on an agreed date. 12-1 of Act 93-1444 of December 31, 1993. If the seller defaults and does not pay for the liquidity, the buyer (investor) can keep the securities. For the cashholder, the advantage is to use an investment in his portfolio to obtain funds at a lower interest rate or simply be able to borrow money. Amounts transferred to a third party in exchange for securities or temporary securities transferred as part of a pension transaction. Securities are subject to a specific claim as to the category (equal obligation of the Treasury, public sector…) of duration and/or issuer. Because issuers are safer, investor returns are theoretically higher for special pension transactions than for remunerators. The title related to the repo is the security of the operation. A broker or speculator sends instructions to a third party that identifies a number of agreements previously accepted as part of an agreement between that broker and an investor.
Brief expressions: 1-400, 401-800, 801-1200, Plus In the event of a pension agreement or swap, the due date is the redemption date. transfer of ownership, which takes the form of a pension agreement; Or result: 119. Exactly: 119. Time: 143 ms. . This transaction is the resumption of repurchase operations by the lender and the transfer of securities by the securities lender.