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A repot is a repurchase agreement to sell certain security to another party and repurchase them on a fixed date, and for a fixed amount, the repurchase agreement is a simultaneous sale and repurchase of a security at a specified price, interest rate and date. There are 3 types of pension transactions:Overnight – one-day maturity transactionsTerm – (fixed-term), which has a defined end dateOpen – which has no specific end date. Most deposits are hosting operations, but a liquid market consists of six months and rest is possible for up to a year. All stores longer than overnight are “Term Rest” because they take a particular term. Deposits are generally short-term Both the repurchase units and the reverse repurchase units of the contract are defined and agreed upon at the beginning of the agreement. Between 2008 and 2014, the Fed introduced quantitative easing (QE) to stimulate the economy. The Fed has built up reserves to buy securities, which has significantly increased its balance sheet and the supply of reserves to the banking system. As a result, the pre-crisis framework was no longer working, so the Fed moved to a “broad reserve” framework with new instruments – interest on excess reserves (IORR) and overnight deposits (ONRRP), the two interest rates that the Fed itself sets – to control its main short-term interest rate. In January 2019, the Federal Reserve`s open market committee – the Fed`s policy committee – confirmed that it “intends to continue to implement monetary policy in a regime where a sufficient reserve offer will ensure that control of the level of the Federal Funds and other short-term interest rates is primarily through the setting of interest rates managed by the Federal Reserve and in which active management of the federal reserve reserve is not necessary.” When the Fed ended its asset buyback program in 2014, the supply of excess reserves in the banking system began to shrink. When the Fed began to reduce its balance sheet in 2017, reserves fell more rapidly. Essentially, reverse deposits and rests are two sides of the same coin – or rather a transaction – that reflect the role of each party.

A repot is an agreement between the parties, in which the buyer agrees to temporarily acquire a basket or group of securities for a specified period of time. The buyer agrees to resell the same assets at a slightly higher price through a reverse inversion contract to the original owner. The re-board operations take place in three forms: indicated delivery, tri-party and detention (where the “selling” party maintains the guarantee during the life of the pension). The third form (Hold-in-custody) is quite rare, especially in development-oriented markets, due in part to the risk that the seller may intervene before the transaction is completed and that the buyer will not be able to recover the guarantees issued as collateral for the transaction. The first form – the indicated delivery – requires the delivery of a predetermined loan at the beginning and maturity of the contract. Tri-Party is essentially a form of trading basket and allows a wider range of instruments in the basket or pool. In the case of a tripartite repurchase transaction, a third-party agent or bank is placed between the “seller” and the buyer. The third party retains control of the securities that are the subject of the agreement and processes payments made by the “seller” to the buyer. Pension agreements have a risk profile similar to all securities lending transactions.

That is, they are relatively safe transactions, since they are secured credits, which are generally used as custodians by a third party. Buy-Sell-Back is a Repoa sale equivalent to an inverted repo. Repo is a form of guaranteed loan. A basket of securities serves as an underlying guarantee for the loan. Securities law is transferred from the seller to the buyer and returns to the original owner after the contract is concluded. The most commonly used guarantees in this market are U.S. Treasury bonds. However, government bonds, agency securities, mortgage-backed securities