Repo rate definition

This risk-free rate is known as the implied repo rate, because the rate is similar to a repurchase reement carried out in the futures market. Generally, high implied repo rates indicate high futures prices, low rates imply low prices. The rates can be used to compare contracts that have different terms to maturity and even underlying assets. The implied repo rate for the contract is more stable than its basis, but as maturity approaches it becomes very sensitive to changes in the futures price, spot price, and (by definition) time to maturity. 

We have given here the legal definition of repo. However, the purpose of the transaction, as we have described above, is to borrow or lend cash, which is why we have used quotation marks when referring to sellers and buyers. The seller of stock is really interested in borrowing cash, on which they will pay interest at a specified interest rate. The buyer ... 

There are a number of unusual features in the French repo market, in addition to the definition of repo in domestic law. These include a registered market-making system, as one observes in the cash government market, and a significant volume of floating-rate repo. A typical market maker s repo screen is shown at Exhibit 10.21. 

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See also in sourсe #XX -- [ ]

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