Special repo rates

Article Abstract:

This article provides the causes and symptoms of special repo rates in a competitive market for repurchase agreements. A repo rate is, in effect, an interest rate on loans collateralized by a specific instrument. A "special" is a repo rate significantly below prevailing market riskless interest rates. This article shows that specials can occur when those owning the collateral are inhibited, whether from legal or institutional requirements or from frictional costs, from supplying collateral into repurchase agreements. Specialness increases the equilibrium price for the underlying instrument by the present value of savings in borrowing costs associated with the repo specials. (Reprinted by permission of the publisher.)

Prices and rates, Financial markets, Repurchase agreements

---

Transparency and international portfolio holdings

Article Abstract:

The positive effects of healthy economic conditions of a country on its international portfolio investments are evaluated.

United States, Intnl Affairs & Finance, National Security and International Affairs, Evaluation, Economic conditions, International finance, Foreign securities

---

Similar abstracts:

• Abstracts: Terex Corp. Albany International Corp. Newcor, Inc
• Abstracts: Will I or won't I?. Translating international standards: not as easy as it looks
• Abstracts: Expense, social and moral control. Accounting and the administration of the old poor law in England and Wales
• Abstracts: Remuneration, retention, and reputation incentives for outside directors. The Statistical and Economic Role of Jumps in Continuous-Time Interest Rate Models
• Abstracts: Trading activity and price volatility in the municipal bond market. Bond insurance: what is special about munis?

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.