' The quality of collateral as well as short seller's positions affect the repo rate'
Is Colombo right?
(a) yes
(b) no only w.r.t quality is correct
(c) no only w.r.t short sellers' positions is correct作者: bodhisattva 时间: 2011-7-13 13:27
Quality - no
SSPs - yes, because if there's a squeeze and you're holding the collateral, you can get a discount作者: ohai 时间: 2011-7-13 13:27
Lol, sorry............answer is "C".
Thought it was an essay question 作者: bpdulog 时间: 2011-7-13 13:27
My guess is yeah, but the conclusion is sort of a stretch. I guess its assuming the dealer needs to locate a lot of the security, more than they can find through securities lending, and have to find through repo. Then they would offer a lower yield to repo that security to lend to shorts?
The other is correct.作者: liangfeng 时间: 2011-7-13 13:27
A
1 the higher the quality of coll the lower the repo rate
2. the more the stock is shorted the more it is desirable as a coll and the lower the repo rate作者: liangfeng 时间: 2011-7-13 13:27
wait a min are u guys saying the quality of the repo rate doesnt matter a la bear sterns?作者: PalacioHill 时间: 2011-7-13 13:27
^^^^^hey easy with the black jokes man作者: NakedPuts2011 时间: 2011-7-13 13:27
Grrrrrrrr.................how the @#$%& could I miss this?
I gotta stop drinking.......作者: bkballa 时间: 2011-7-13 13:27
skillionaire Wrote:
-------------------------------------------------------
> Grrrrrrrr.................how the @#$%& could I
> miss this?
>
> I gotta stop drinking.......
You are 3 days early buddy.作者: mp3bu 时间: 2011-7-13 13:27
It's A
In a big loop, short sellers needs affect the supply/demand of collateral which the lender requires.
So much for my acronym, which my scrabble-playing Grandmother came up with:
'Quad-Defects'.
I think of a fat repo man who's broken the wheels off a quad bike
