Repurchase Agreements (Repos) and Securities Lending
June 6, 2013, NYC Sept. 17, 2013, NYC
Early-bird Registration Fee: US$895.00 Register Location Instructor
($100 Early-bird Registration Discount Ends Aug. 17)
Intermediate Level, 7 CPE Credits
Instructor: Charles Gates
Hours: 9:00 am - 5:00 pm; Registration/Breakfast begins at 8:30 am
NYC Location: India House, One Hanover Square (Financial District)
Boston Location: Holiday Inn Boston at Beacon Hill, 5 Blossom St.
Objectives
By the end of the course participant will be able to:
- Describe the features and characteristics of secured financing:
o Repo agreements
o 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
- Determine liquidity 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