Repo vs. Reverse Repo

QuantFFM

Member
Hi all,
im struggeling with the definition of repo vs. reverse repo in the context of:
Study Notes OP risk - Tuckman Ch12 Side 4 in the Notes

=> Is the following from the view of the Investor a reverse repo rather than a repo?

=> Because: For the party selling the security and agreeing to repurchase it, it is a repo. For the party on the other end of the transaction, buying the security and agreeing to sell in the future, it is a reverse repo.

upload_2018-5-11_13-49-51.png

Thanks in advance
 

Nicole Seaman

Director of CFA & FRM Operations
Staff member
Subscriber
Hi all,
im struggeling with the definition of repo vs. reverse repo in the context of:
Study Notes OP risk - Tuckman Ch12 Side 4 in the Notes

=> Is the following from the view of the Investor a reverse repo rather than a repo?

=> Because: For the party selling the security and agreeing to repurchase it, it is a repo. For the party on the other end of the transaction, buying the security and agreeing to sell in the future, it is a reverse repo.

View attachment 1609

Thanks in advance
Hello @QuantFFM

I'm not sure if this will help, but I think David discusses the same concept that you are referring to here in this thread: https://forum.bionicturtle.com/thre...ase-agreements-repos-tuckman.8412/#post-55112.

Nicole
 
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