Repurchase Agreements (REPOs) are short-term financial instruments used for borrowing and lending funds through the sale and repurchase of securities. They play a critical role in maintaining liquidity in financial markets while offering low-risk investment opportunities. This training program equips participants with a clear knowledge on REPO mechanisms, their applications in financial markets, and strategies to manage risks and optimize returns in REPO transactions.
Analyze the fundamentals and structure of REPOs in financial markets.
Utilize pricing and valuation techniques for REPO transactions.
Identify and manage risks associated with REPO operations.
Evaluate legal and regulatory frameworks governing REPO markets.
Explore advanced technologies and trends influencing REPO markets.
Treasury and finance professionals.
Investment bankers and portfolio managers.
Risk management and compliance officers.
Financial market analysts.
Professionals involved in money market operations.
Definition and structure of REPOs in financial markets.
Key terms: haircut, margin, collateral, and settlement.
Types of REPOs: classic, sell/buy-back, and tri-party.
Differences between REPOs and other short-term financing instruments.
Historical development and importance in global financial systems.
Principles of REPO pricing and yield calculations.
Valuation of collateral and its role in determining REPO terms.
REPOs for liquidity management and arbitrage.
Key activities for the use of REPOs in monetary policy implementation by central banks.
Tools for identifying risks: counterparty, market, and operational risks.
Managing collateral: eligibility, valuation, and substitution.
Strategies for minimizing settlement and liquidity risks.
Role of margin calls and haircuts in mitigating financial exposure.
Master agreements: GMRA and their provisions.
Overview of global and regional REPO market regulations.
Compliance with Basel III guidelines on liquidity and leverage.
Addressing anti-money laundering (AML) and counter-terrorism financing (CTF) risks in REPOs.
Adapting to evolving regulatory changes and their market implications.
Exploring electronic platforms and automation in REPO trading.
The role of REPOs in managing systemic risk and financial stability.
Innovations in collateral management technologies.
Impact of economic policies on REPO markets.
Future trends: sustainability-linked REPOs and green finance integration.