In tri-party repo a clearing bank acting as agent holds the collateral, allocates it from the borrower’s inventory according to the lender’s eligibility schedule, values it and applies the haircuts; the lender is lent against a basket, never a specific security. In bilateral repo the two sides settle directly, delivery versus payment, and the cash lender can ask for a specific security.
Quantitative Finance · Glossário
O que é Tri-party and bilateral repo?
Também chamado de: tri-party repo · bilateral repo