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Inside the Currency Market: Mechanics, Valuation, and Strategies
book

Inside the Currency Market: Mechanics, Valuation, and Strategies

by Brian Twomey
November 2011
Beginner
335 pages
9h 33m
English
Bloomberg Press
Content preview from Inside the Currency Market: Mechanics, Valuation, and Strategies

Repurchase Agreements

Repurchase agreements comprise two forms, a repo rate and a reverse-repo rate. The reverse-repo rate can, depending on market conditions, represent an ask side of a currency, a ceiling. But that is one currency. Each nation must be understood due to the various factors to achieve its repo rate and the day-count factors of interest.

Crisis economic conditions forced not only the normally reported and understood general collateral (GC) rate, but a government rate was established as borrowers were forced to borrow from central bank facilities. This chapter outlines all the various aspects of the repurchase agreement market from nation to nation. What was once a rate hidden from the market has, in the last 10 years or so, become ...

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ISBN: 9781118149331Purchase book