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.
Thanks in advance
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.
Thanks in advance