Archive for the ‘Repos’ Category

Repo Credit Lesson from Paulson Auditorium

May 24, 2010

Chidem Kurdas

A broker does a repurchase transaction with a hedge fund. Mortgage-backed securities are the collateral. The fund get short-term financing; the broker holds the securities. This market broke down in 2008 and never recovered to pre-crisis levels. What happened? (more…)

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