Interbank counterparty

The credit quality of the counterparty supplying the collateral for example, a central bank counterparty, interbank counterparty and corporate will all suggest different margin levels. 

The market is a traditional OTC one, with trades conducted on the telephone directly between banking counterparties or via brokers. There are a number of electronic trading platforms being developed primarily for the interbank market. 

Investment banks and hedge funds often use TRS contracts to pay for positions in securities that they cannot— for operational, credit, or other reasons—fund using the interbank market or a classic repo. The TRS counterparty that is long the security swaps it with a counterparty that... 

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