360 Capital Markets

Repos and Securities Lending

Current Status
Not Enrolled
Price
$295.00
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Objectives

By the end of the course participant will be able to:

  • Describe the features and characteristics of secured financing:
    • Repo agreements
    • Securities lending programs
  • Demonstrate the applications and uses of these products
  • Identify the key risks associated with managing these products

Session 1: Repurchase Agreements (Repos)

By the end of this session the course participant will be able to:

  • 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
  • Describe the features, characteristics and terminology of repos
  • Demonstrate fundamental applications:
    • Financing a position
    • Shorting a security
  • Discuss haircut ranges for various securities and counterparties
  • Distinguish between general and special collateral
  • Explain the mechanics of dollar rolls

Session 2: Repo Applications

By the end of this session the course participant will be able to:

  • Demonstrate/discuss repo trading strategies within the context of various economic scenarios:
    • Yield enhancement/Specials Trading
    • Match book trading (perspective from repo dealer)
      • Positive yield curve environment
      • Negative yield curve environment
      • Credit intermediation
    • Spread Trades
      • Yield curve arbitrage
      • Other spread trades
    • Leverage
    • Implied repo and basis trading

Session 3: Master Agreements, Tri-Party Repo, Prime Brokers and Hypothecated Assets

By the end of this session the course participant will be able to:

  • Discuss documentation related to securities financing
  • Discuss the mechanics of hypothecated assets
    • Differentiate between segregated and pooled accounts
  • Identify the features of tri-party repo
    • Discuss the credit crises and the role of tri-party repo
  • Identify the role of a Prime Broker
    • Determineliquidity challenges emanating from prime broker operations

Session 4: Securities Lending

By the end of this session the course participant will be able to:

  • Identify the features and characteristics of securities lending
  • Identify the mechanics of securities lending
  • Differentiate between securities lending and repurchase agreements
  • Demonstrate within given economic scenarios the main applications in equity securities lending:
    • Short selling
    • Convertible bond arbitrage
    • Long/short equity
    • Mergers arbitrage
    • Index arbitrage