Non-performing loan and Opening leg: Difference between pages

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imported>Doug Williamson
(Create page. Source: UK Money Markets Code April 2017: http://www.bankofengland.co.uk/markets/Documents/money/code/ukmoneymarketscode.pdf)
 
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(NPL). A bank loan that has stopped earning interest and where the borrower is believed to be likely to default on the principal.
''Repurchase agreements''
 
A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.
 
The second trade reverses the initial sale and purchase, but at a later date and different price.
 
 
The opening leg is the first trade in the repo.
 
It is also known as the starting, first, near, or onside leg.
 


== See also ==
== See also ==
* [[Default]]
* [[Closing leg]]
* [[Interest]]
* [[Near leg]]
* [[Principal]]
* [[Repo rate]]
* [[Repurchase agreement]]
 


[http://www.treasurers.org/repos  ACT briefing note: Practical steps to investing in Repos ]

Revision as of 15:51, 25 June 2017

Repurchase agreements

A securities repurchase agreement ('repo') involves a pair of trades with the same counterparty in the same security.

The second trade reverses the initial sale and purchase, but at a later date and different price.


The opening leg is the first trade in the repo.

It is also known as the starting, first, near, or onside leg.


See also


ACT briefing note: Practical steps to investing in Repos