Repo Markets : Background Note
Repo markets are an essential component of liquid Government debt markets, acting as a transmission belt between money and debt markets, as well as serving to conduct key functions for the efficient operation of debt markets. These include, among others, credit risk management, funding debt portf...
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| Format: | Working Paper |
| Language: | English en_US |
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Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/2016/03/26122592/repo-markets-draft-background-note http://hdl.handle.net/10986/24100 |
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okr-10986-24100 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
| topic |
USE OF REPOS MONETARY POLICY HOLDING FIXED INCOME MARKET MARKET COUNTRIES BORROWER ACCOUNTING DEPOSITS FIXED INCOME LEGAL ENVIRONMENT DEFAULTS VALUATION MARKET PLAYERS INTEREST INSTITUTIONAL INVESTORS LIQUIDITY RISKS DEBT MANAGEMENT DOMESTIC MARKET PORTFOLIO LIQUIDITY RISK BANKRUPTCY LAW CAPITAL ADEQUACY LOAN TAX PROVISIONS CREDITWORTHINESS BORROWERS MUTUAL FUNDS TREASURY SECURITIES SECURITIES HOLDINGS OVERNIGHT REPOS BANKRUPTCY MARKET PRACTITIONERS CASH FLOWS INSTRUMENTS MARKET ENVIRONMENT REPO TRANSACTIONS BANKRUPTCY COURTS FINANCIAL COLLATERAL MARKET PARTICIPANTS MARKET LIQUIDITY DERIVATIVES CURRENCY MARKET DEVELOPMENT DEBT MANAGEMENT AGENCY LEGAL TRANSACTIONS PRIMARY DEALERS INTERNATIONAL BOND EFFICIENT MARKET EMERGING MARKET DEBT CAPITAL MARKET MARKETS SETTLEMENT SECURITY INTEREST REPO RATES EQUITIES CLEAN PRICE INVENTORY LEGAL FRAMEWORK CIVIL CODE TRANSACTIONS BUY BACK REPO MARKET EMERGING MARKETS FEDERAL RESERVE BOND MARKETS GOOD GLOBAL MARKET DOMESTIC MARKETS TRANSPARENCY MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES COLLATERAL RISK FACE AMOUNT EXCHANGES OVERNIGHT REPO RISK EXPOSURE BANKRUPTCY PROCEDURES MARKET DISCIPLINE CASH MANAGEMENT SECURITY INTERESTS LOCAL MARKETS LEGAL TRADITIONS T-BILLS LOCAL CURRENCY MONEY MARKETS DIRTY PRICE CENTRAL DEPOSITORIES MARKET RISK SECURITIES TREASURY CREDIT RISK HOLDINGS GOVERNMENT DEBT DEPOSITORY INSTITUTION GOVERNMENT BONDS OPEN MARKET LEGAL SYSTEM MUTUAL FUND CENTRAL DEPOSITORY SECONDARY MARKET ACTIVITY CUSTODY ARRANGEMENTS COUPON PRIVATE INVESTORS MARK-TO-MARKET RISK CONTROL DEBT MARKET DEVELOPMENT ACCEPTABLE COLLATERAL CASH BALANCES LENDING MARKET PARTICIPANT MARKET PRACTICES MATURITIES LIABILITY MANAGEMENT RETAIL INVESTOR INTERNATIONAL MARKETS CREDIT RISK EXPOSURES CREDIT LINES BOND DEFAULTS PLEDGES DEPOSIT CAPITAL MARKETS LIABILITY SECURITIES DEALER MARKET STRUCTURE REPO AGREEMENT LIQUIDATION STOCK SALE OF SECURITIES REPO USE OF REPO LOAN MARKET INTEREST RATE EXCHANGE PROPERTY RIGHTS TREASURIES INTERNATIONAL BOND MARKET PAYMENT SYSTEM RESERVE REQUIREMENTS LIQUIDITY EQUITY MARKET GOVERNMENT BOND MARKET CDS BONDS TAX GOVERNMENT BOND MARKET INFRASTRUCTURE RESERVE CENTRAL BANKS CREDITORS LIQUID ASSET CREDITOR LENDER REINVESTMENT RATE CENTRAL BANK MATURITY EMERGING MARKET COUNTRIES RISK EXPOSURES FIXED INCOME MARKETS PRIMARY MARKET MARKET PRACTICE PORTFOLIOS PRICE VOLATILITY CONTRACTS TRADING REPO MARKETS INTEREST RATES DEPOSIT ACCOUNTS COUPON PAYMENT RETURN LOANS SETTLEMENT SYSTEM SECONDARY MARKET LIQUIDITY INVENTORIES FINANCE FOREIGN CURRENCY BROKER MARKET PRICE CUSTODY SOVEREIGN ISSUERS GOVERNMENT DEBT MARKET GOVERNMENT SECURITIES CREDIT LINE EQUITY CONTRACT LAW TRANSACTION SECURITIES MARKETS INVESTORS VALUATIONS COUPONS BANKRUPTCY COURT BOOK-ENTRY LOCAL MARKET COLLATERALIZATION BOND MARKET CONTRACT YIELD CURVE INDIVIDUAL CREDITORS PROPERTY T-BILL REPO TRANSACTION DEFAULT MARKET JUDICIAL SALE MARKET VALUE RISK FACTORS DEBT MARKETS BANK PAYMENT INTERESTS REPO AGREEMENTS DEBT MARKET INVESTOR SECURITIES EXCHANGE SECURITY FINANCIAL DEVELOPMENT REPO RATE DEBT INSTRUMENTS STOCK EXCHANGE INVESTMENT NATIONAL BANK BOND SHARE CIVIL LAW COLLATERAL FINANCIAL MARKETS BID MONEY MARKET REINVESTMENT RISK MANAGEMENT DEBT INSTRUMENT CHECK INTEREST RATE RISK SWAPS COUPON PAYMENTS REPOS INSTRUMENT MARKET TRANSPARENCY ARBITRAGE SECONDARY MARKET COMMON LAW STATUTORY LAW BANK INVESTORS SWAP RETAIL INVESTORS SETTLEMENT SERVICES ASSET MANAGERS GOVERNMENT PAPER GOVERNMENT DEBT MARKETS |
| spellingShingle |
USE OF REPOS MONETARY POLICY HOLDING FIXED INCOME MARKET MARKET COUNTRIES BORROWER ACCOUNTING DEPOSITS FIXED INCOME LEGAL ENVIRONMENT DEFAULTS VALUATION MARKET PLAYERS INTEREST INSTITUTIONAL INVESTORS LIQUIDITY RISKS DEBT MANAGEMENT DOMESTIC MARKET PORTFOLIO LIQUIDITY RISK BANKRUPTCY LAW CAPITAL ADEQUACY LOAN TAX PROVISIONS CREDITWORTHINESS BORROWERS MUTUAL FUNDS TREASURY SECURITIES SECURITIES HOLDINGS OVERNIGHT REPOS BANKRUPTCY MARKET PRACTITIONERS CASH FLOWS INSTRUMENTS MARKET ENVIRONMENT REPO TRANSACTIONS BANKRUPTCY COURTS FINANCIAL COLLATERAL MARKET PARTICIPANTS MARKET LIQUIDITY DERIVATIVES CURRENCY MARKET DEVELOPMENT DEBT MANAGEMENT AGENCY LEGAL TRANSACTIONS PRIMARY DEALERS INTERNATIONAL BOND EFFICIENT MARKET EMERGING MARKET DEBT CAPITAL MARKET MARKETS SETTLEMENT SECURITY INTEREST REPO RATES EQUITIES CLEAN PRICE INVENTORY LEGAL FRAMEWORK CIVIL CODE TRANSACTIONS BUY BACK REPO MARKET EMERGING MARKETS FEDERAL RESERVE BOND MARKETS GOOD GLOBAL MARKET DOMESTIC MARKETS TRANSPARENCY MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES COLLATERAL RISK FACE AMOUNT EXCHANGES OVERNIGHT REPO RISK EXPOSURE BANKRUPTCY PROCEDURES MARKET DISCIPLINE CASH MANAGEMENT SECURITY INTERESTS LOCAL MARKETS LEGAL TRADITIONS T-BILLS LOCAL CURRENCY MONEY MARKETS DIRTY PRICE CENTRAL DEPOSITORIES MARKET RISK SECURITIES TREASURY CREDIT RISK HOLDINGS GOVERNMENT DEBT DEPOSITORY INSTITUTION GOVERNMENT BONDS OPEN MARKET LEGAL SYSTEM MUTUAL FUND CENTRAL DEPOSITORY SECONDARY MARKET ACTIVITY CUSTODY ARRANGEMENTS COUPON PRIVATE INVESTORS MARK-TO-MARKET RISK CONTROL DEBT MARKET DEVELOPMENT ACCEPTABLE COLLATERAL CASH BALANCES LENDING MARKET PARTICIPANT MARKET PRACTICES MATURITIES LIABILITY MANAGEMENT RETAIL INVESTOR INTERNATIONAL MARKETS CREDIT RISK EXPOSURES CREDIT LINES BOND DEFAULTS PLEDGES DEPOSIT CAPITAL MARKETS LIABILITY SECURITIES DEALER MARKET STRUCTURE REPO AGREEMENT LIQUIDATION STOCK SALE OF SECURITIES REPO USE OF REPO LOAN MARKET INTEREST RATE EXCHANGE PROPERTY RIGHTS TREASURIES INTERNATIONAL BOND MARKET PAYMENT SYSTEM RESERVE REQUIREMENTS LIQUIDITY EQUITY MARKET GOVERNMENT BOND MARKET CDS BONDS TAX GOVERNMENT BOND MARKET INFRASTRUCTURE RESERVE CENTRAL BANKS CREDITORS LIQUID ASSET CREDITOR LENDER REINVESTMENT RATE CENTRAL BANK MATURITY EMERGING MARKET COUNTRIES RISK EXPOSURES FIXED INCOME MARKETS PRIMARY MARKET MARKET PRACTICE PORTFOLIOS PRICE VOLATILITY CONTRACTS TRADING REPO MARKETS INTEREST RATES DEPOSIT ACCOUNTS COUPON PAYMENT RETURN LOANS SETTLEMENT SYSTEM SECONDARY MARKET LIQUIDITY INVENTORIES FINANCE FOREIGN CURRENCY BROKER MARKET PRICE CUSTODY SOVEREIGN ISSUERS GOVERNMENT DEBT MARKET GOVERNMENT SECURITIES CREDIT LINE EQUITY CONTRACT LAW TRANSACTION SECURITIES MARKETS INVESTORS VALUATIONS COUPONS BANKRUPTCY COURT BOOK-ENTRY LOCAL MARKET COLLATERALIZATION BOND MARKET CONTRACT YIELD CURVE INDIVIDUAL CREDITORS PROPERTY T-BILL REPO TRANSACTION DEFAULT MARKET JUDICIAL SALE MARKET VALUE RISK FACTORS DEBT MARKETS BANK PAYMENT INTERESTS REPO AGREEMENTS DEBT MARKET INVESTOR SECURITIES EXCHANGE SECURITY FINANCIAL DEVELOPMENT REPO RATE DEBT INSTRUMENTS STOCK EXCHANGE INVESTMENT NATIONAL BANK BOND SHARE CIVIL LAW COLLATERAL FINANCIAL MARKETS BID MONEY MARKET REINVESTMENT RISK MANAGEMENT DEBT INSTRUMENT CHECK INTEREST RATE RISK SWAPS COUPON PAYMENTS REPOS INSTRUMENT MARKET TRANSPARENCY ARBITRAGE SECONDARY MARKET COMMON LAW STATUTORY LAW BANK INVESTORS SWAP RETAIL INVESTORS SETTLEMENT SERVICES ASSET MANAGERS GOVERNMENT PAPER GOVERNMENT DEBT MARKETS World Bank Repo Markets : Background Note |
| description |
Repo markets are an essential component of liquid Government debt markets, acting
as a transmission belt between money and debt markets, as well as serving to conduct
key functions for the efficient operation of debt markets. These include, among others,
credit risk management, funding debt portfolios, playing the yield curve, and covering
short positions and settlement fails. The hybrid nature of a repo between a
collateralized loan and a full transfer of ownership makes it a very versatile instrument
for a broad range of market participants with very different business models. However,
this is at the same time the reason for its complexity. This note addresses the legal,
structural, accounting, tax, regulatory and infrastructure factors that are decisive for
repo market development. The legal and infrastructure factors that underpin repo
markets functionality are evolving ones and may be different depending on the
country. The perspective adopted in this note intends to provide a balanced account of
both the conceptual issues in each topic and relevant country cases, with the objective
of providing policy makers with analytical tools to address their country specific
context. |
| format |
Working Paper |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Repo Markets : Background Note |
| title_short |
Repo Markets : Background Note |
| title_full |
Repo Markets : Background Note |
| title_fullStr |
Repo Markets : Background Note |
| title_full_unstemmed |
Repo Markets : Background Note |
| title_sort |
repo markets : background note |
| publisher |
Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/03/26122592/repo-markets-draft-background-note http://hdl.handle.net/10986/24100 |
| _version_ |
1764455646845992960 |
| spelling |
okr-10986-241002021-04-23T14:04:19Z Repo Markets : Background Note World Bank USE OF REPOS MONETARY POLICY HOLDING FIXED INCOME MARKET MARKET COUNTRIES BORROWER ACCOUNTING DEPOSITS FIXED INCOME LEGAL ENVIRONMENT DEFAULTS VALUATION MARKET PLAYERS INTEREST INSTITUTIONAL INVESTORS LIQUIDITY RISKS DEBT MANAGEMENT DOMESTIC MARKET PORTFOLIO LIQUIDITY RISK BANKRUPTCY LAW CAPITAL ADEQUACY LOAN TAX PROVISIONS CREDITWORTHINESS BORROWERS MUTUAL FUNDS TREASURY SECURITIES SECURITIES HOLDINGS OVERNIGHT REPOS BANKRUPTCY MARKET PRACTITIONERS CASH FLOWS INSTRUMENTS MARKET ENVIRONMENT REPO TRANSACTIONS BANKRUPTCY COURTS FINANCIAL COLLATERAL MARKET PARTICIPANTS MARKET LIQUIDITY DERIVATIVES CURRENCY MARKET DEVELOPMENT DEBT MANAGEMENT AGENCY LEGAL TRANSACTIONS PRIMARY DEALERS INTERNATIONAL BOND EFFICIENT MARKET EMERGING MARKET DEBT CAPITAL MARKET MARKETS SETTLEMENT SECURITY INTEREST REPO RATES EQUITIES CLEAN PRICE INVENTORY LEGAL FRAMEWORK CIVIL CODE TRANSACTIONS BUY BACK REPO MARKET EMERGING MARKETS FEDERAL RESERVE BOND MARKETS GOOD GLOBAL MARKET DOMESTIC MARKETS TRANSPARENCY MARKET CONDITIONS TURNOVER FUTURE MARKET PRICES COLLATERAL RISK FACE AMOUNT EXCHANGES OVERNIGHT REPO RISK EXPOSURE BANKRUPTCY PROCEDURES MARKET DISCIPLINE CASH MANAGEMENT SECURITY INTERESTS LOCAL MARKETS LEGAL TRADITIONS T-BILLS LOCAL CURRENCY MONEY MARKETS DIRTY PRICE CENTRAL DEPOSITORIES MARKET RISK SECURITIES TREASURY CREDIT RISK HOLDINGS GOVERNMENT DEBT DEPOSITORY INSTITUTION GOVERNMENT BONDS OPEN MARKET LEGAL SYSTEM MUTUAL FUND CENTRAL DEPOSITORY SECONDARY MARKET ACTIVITY CUSTODY ARRANGEMENTS COUPON PRIVATE INVESTORS MARK-TO-MARKET RISK CONTROL DEBT MARKET DEVELOPMENT ACCEPTABLE COLLATERAL CASH BALANCES LENDING MARKET PARTICIPANT MARKET PRACTICES MATURITIES LIABILITY MANAGEMENT RETAIL INVESTOR INTERNATIONAL MARKETS CREDIT RISK EXPOSURES CREDIT LINES BOND DEFAULTS PLEDGES DEPOSIT CAPITAL MARKETS LIABILITY SECURITIES DEALER MARKET STRUCTURE REPO AGREEMENT LIQUIDATION STOCK SALE OF SECURITIES REPO USE OF REPO LOAN MARKET INTEREST RATE EXCHANGE PROPERTY RIGHTS TREASURIES INTERNATIONAL BOND MARKET PAYMENT SYSTEM RESERVE REQUIREMENTS LIQUIDITY EQUITY MARKET GOVERNMENT BOND MARKET CDS BONDS TAX GOVERNMENT BOND MARKET INFRASTRUCTURE RESERVE CENTRAL BANKS CREDITORS LIQUID ASSET CREDITOR LENDER REINVESTMENT RATE CENTRAL BANK MATURITY EMERGING MARKET COUNTRIES RISK EXPOSURES FIXED INCOME MARKETS PRIMARY MARKET MARKET PRACTICE PORTFOLIOS PRICE VOLATILITY CONTRACTS TRADING REPO MARKETS INTEREST RATES DEPOSIT ACCOUNTS COUPON PAYMENT RETURN LOANS SETTLEMENT SYSTEM SECONDARY MARKET LIQUIDITY INVENTORIES FINANCE FOREIGN CURRENCY BROKER MARKET PRICE CUSTODY SOVEREIGN ISSUERS GOVERNMENT DEBT MARKET GOVERNMENT SECURITIES CREDIT LINE EQUITY CONTRACT LAW TRANSACTION SECURITIES MARKETS INVESTORS VALUATIONS COUPONS BANKRUPTCY COURT BOOK-ENTRY LOCAL MARKET COLLATERALIZATION BOND MARKET CONTRACT YIELD CURVE INDIVIDUAL CREDITORS PROPERTY T-BILL REPO TRANSACTION DEFAULT MARKET JUDICIAL SALE MARKET VALUE RISK FACTORS DEBT MARKETS BANK PAYMENT INTERESTS REPO AGREEMENTS DEBT MARKET INVESTOR SECURITIES EXCHANGE SECURITY FINANCIAL DEVELOPMENT REPO RATE DEBT INSTRUMENTS STOCK EXCHANGE INVESTMENT NATIONAL BANK BOND SHARE CIVIL LAW COLLATERAL FINANCIAL MARKETS BID MONEY MARKET REINVESTMENT RISK MANAGEMENT DEBT INSTRUMENT CHECK INTEREST RATE RISK SWAPS COUPON PAYMENTS REPOS INSTRUMENT MARKET TRANSPARENCY ARBITRAGE SECONDARY MARKET COMMON LAW STATUTORY LAW BANK INVESTORS SWAP RETAIL INVESTORS SETTLEMENT SERVICES ASSET MANAGERS GOVERNMENT PAPER GOVERNMENT DEBT MARKETS Repo markets are an essential component of liquid Government debt markets, acting as a transmission belt between money and debt markets, as well as serving to conduct key functions for the efficient operation of debt markets. These include, among others, credit risk management, funding debt portfolios, playing the yield curve, and covering short positions and settlement fails. The hybrid nature of a repo between a collateralized loan and a full transfer of ownership makes it a very versatile instrument for a broad range of market participants with very different business models. However, this is at the same time the reason for its complexity. This note addresses the legal, structural, accounting, tax, regulatory and infrastructure factors that are decisive for repo market development. The legal and infrastructure factors that underpin repo markets functionality are evolving ones and may be different depending on the country. The perspective adopted in this note intends to provide a balanced account of both the conceptual issues in each topic and relevant country cases, with the objective of providing policy makers with analytical tools to address their country specific context. 2016-04-20T21:35:50Z 2016-04-20T21:35:50Z 2010-03 Working Paper http://documents.worldbank.org/curated/en/2016/03/26122592/repo-markets-draft-background-note http://hdl.handle.net/10986/24100 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Publications & Research Publications & Research :: Working Paper |