The Repurchase Agreement Refined: Gcf Repo

7 Pages Posted: 14 Mar 2005

See all articles by Michael J. Fleming

Michael J. Fleming

Federal Reserve Bank of New York

Kenneth Garbade

Federal Reserve Bank of New York

Abstract

One of the largest and most important of the money markets is the market for repurchase agreements. In a repurchase agreement, a borrower of money effectively agrees to provide securities as collateral to the lender to mitigate credit risk. GCF Repo is a recent innovation in this market that reduces transaction costs, enhances liquidity, and facilitates the efficient use of collateral.

Keywords: repurchase agreements, RP, repo, fails, negative interest rates

JEL Classification: G28, G18, H63

Suggested Citation

Fleming, Michael J. and Garbade, Kenneth, The Repurchase Agreement Refined: Gcf Repo. Available at SSRN: https://ssrn.com/abstract=682701

Michael J. Fleming (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-6372 (Phone)
212-720-1582 (Fax)

HOME PAGE: http://www.newyorkfed.org/research/economists/fleming/

Kenneth Garbade

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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