Investment Operations

Comprehensive Repos

Categories Operations

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

1:00 pm - 5:00 pm

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: TBD

Prerequisite: None

Agenda

Day 1

Repurchase agreements (repos) have long been central activities in the broker-dealer universe.  The first day of this virtual course demystifies both the mechanics and economics of repos.  Explained from the perspective of both the broker/dealer and the external client, course participants will learn how practitioners benefit from this type of secured financing.

  • Describe the features, characteristics and terminology of repurchase agreements (repos)
  • Explain the mechanics of a classic repo/reverse repo transaction
  • Explain the mechanics of buy/sell agreements
  • Differentiate between classic repo and buy/sell agreements
  • Identify the main market participants/end users in the repo market
  • Explain basic repo trading strategies

Repurchase Agreements (Repos)

  1. Features, characteristics and terminology
  2. Mechanics of a classic repo/reverse repo transaction
  3. Mechanics of buy/sell agreements
  4. Main market participants
  5. Haircuts
  6. General and Special Collateral

Repos in Practice

  1. Matchbook trading (Repo/Treasury Dealers)
  2. Yield enhancement/Specials trading
  3. Prime brokers
  4. Master agreements
  5. Hypothecated assets

Current Issues

  1. Monetary policy
  2. Federal Reserve and reverse repo program
Day 2

On the second day of this course, we will offer exercises and real trades regarding the use of repos in practice. Explained from the perspective of both the broker/dealer and the external client, course participants will learn how practitioners benefit from this type of secured financing.

  • Be able to describe the mechanics of a classic repo/reverse repo transaction from a screenshot
  • Identify the main market participants/end users in the repo market
  • Explain repo trading strategies
  • Identify and understand macroeconomic factors
  • Understand current repo market

Mechanics of a Repo Trade

  1. Breakdown of an actual Repo trade
  2. Repo confirmations
  3. Repo cash flows
  4. Tri party repo

Exercise: Determine cash flows given notional amounts, rate and days

Strategies

  1. Screenshot audit
  2. Motivations
  3. Cash flow
  4. Spread trades
  5. Leverage
  6. Implied repo and basis trading

Macro Factors and Current Market

  1. Banking system
  2. International markets
  3. Links to other assets
  4. Money market reform

Exercise: Repo trading volumes and intraday price action

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

1:00 pm - 5:00 pm

Description

*This course can also be offered upon request and can be customized to fit your team’s needs.

Date: TBD

Prerequisite: None

Agenda

Day 1

Repurchase agreements (repos) have long been central activities in the broker-dealer universe.  The first day of this virtual course demystifies both the mechanics and economics of repos.  Explained from the perspective of both the broker/dealer and the external client, course participants will learn how practitioners benefit from this type of secured financing.

  • Describe the features, characteristics and terminology of repurchase agreements (repos)
  • Explain the mechanics of a classic repo/reverse repo transaction
  • Explain the mechanics of buy/sell agreements
  • Differentiate between classic repo and buy/sell agreements
  • Identify the main market participants/end users in the repo market
  • Explain basic repo trading strategies

Repurchase Agreements (Repos)

  1. Features, characteristics and terminology
  2. Mechanics of a classic repo/reverse repo transaction
  3. Mechanics of buy/sell agreements
  4. Main market participants
  5. Haircuts
  6. General and Special Collateral

Repos in Practice

  1. Matchbook trading (Repo/Treasury Dealers)
  2. Yield enhancement/Specials trading
  3. Prime brokers
  4. Master agreements
  5. Hypothecated assets

Current Issues

  1. Monetary policy
  2. Federal Reserve and reverse repo program
Day 2

On the second day of this course, we will offer exercises and real trades regarding the use of repos in practice. Explained from the perspective of both the broker/dealer and the external client, course participants will learn how practitioners benefit from this type of secured financing.

  • Be able to describe the mechanics of a classic repo/reverse repo transaction from a screenshot
  • Identify the main market participants/end users in the repo market
  • Explain repo trading strategies
  • Identify and understand macroeconomic factors
  • Understand current repo market

Mechanics of a Repo Trade

  1. Breakdown of an actual Repo trade
  2. Repo confirmations
  3. Repo cash flows
  4. Tri party repo

Exercise: Determine cash flows given notional amounts, rate and days

Strategies

  1. Screenshot audit
  2. Motivations
  3. Cash flow
  4. Spread trades
  5. Leverage
  6. Implied repo and basis trading

Macro Factors and Current Market

  1. Banking system
  2. International markets
  3. Links to other assets
  4. Money market reform

Exercise: Repo trading volumes and intraday price action

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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