In fact, counterparties` credit risk is the primary risk of rest. As with any loan, the creditor bears the risk that the debtor will not be able to repay the principal. Deposits act as a secured debt, which reduces the overall risk. And since the repo price exceeds the value of the guarantees, these agreements remain mutually beneficial for buyers and sellers. The parties agree to cancel the transaction normally the following day. This transaction is called Reverse Repurchase Agreement or Reverse Repo. An open repo transaction (also known as a repo on demand) operates in the same way as a term repo, except that the trader and the counterparty accept the transaction without setting the maturity date. On the contrary, both parties can terminate the trade by informing the other party before an agreed daily deadline. .

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