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Template:Differences between repo and sell buyback: Difference between revisions
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Template:Differences between repo and sell buyback (view source)
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*'''Documented [[sell/buy-back]]s''': There are operational differences between repos and documented sell backs: | *'''Documented [[sell/buy-back]]s''': There are operational differences between repos and documented sell backs: | ||
**Differences in the [[margin]]ing process | **Differences in the [[margin]]ing process | ||
**What happens | **What happens to {{gmraprov|Income Payments}} on {{gmraprov|Purchased Securities}}. In a {{nutshell}}, under a Repurchase Transaction you “[[manufacture]]” income back to the {{gmraprov|Seller}} during the life of the {{gmraprov|Transaction}}, but do not account separately for {{gmraprov|Accrued Interest}} (it will be factored into the market price of the securities for margining purposes); in a Buy/Sell Back transaction the Buyer doesn’t manufacture {{gmraprov|Income Payments}} back to the {{gmraprov|Seller}}, but does account for {{gmraprov|Accrued Interest}}. | ||
====The | ====The JC’s explanation==== | ||
Unless you have a taste for {{tag|paradox}} (and who, in our shadow-flecked modern world doesn’t?) there’s ''no'' difference between a [[repo]] and a [[sell/buy-back]], and even seasoned industry professionals get fidgety and make their excuses to pop off to the bathroom if you ask them to give one. To the sentiment that [[buy/sell-back]]s are undocumented, the lie is somewhat given to that by the fact that the {{gmra}} expressly incoporates the {{gmraprov|Buy/Sell Back Transaction}} as a defined term ''with its own freaking Annex'', meticulously negotiated into the master by [[negotiator]]s the world over. | Unless you have a taste for {{tag|paradox}} (and who, in our shadow-flecked modern world doesn’t?) there’s ''no'' difference between a [[repo]] and a [[sell/buy-back]], and even seasoned industry professionals get fidgety and make their excuses to pop off to the bathroom if you ask them to give one. To the sentiment that [[buy/sell-back]]s are undocumented, the lie is somewhat given to that by the fact that the {{gmra}} expressly incoporates the {{gmraprov|Buy/Sell Back Transaction}} as a defined term ''with its own freaking Annex'', meticulously negotiated into the master by [[negotiator]]s the world over. | ||