Both debtor repos and debtor quasi-repos are repos from the point of view of the borrower, which is the company that sells the securities as collateral. A debtor quasi-repo is similar to a debtor repo but is on non-standard terms so that it is not within the definition of debtor repo (see below). An example would be where the arrangement under which the securities are sold provides only for someone other than the original borrower to buy them back with the original borrower agreeing to pay that person to assume their obligations under the repo.
Debtor repo
A borrowing company (or a firm of which the borrowing company is a member) has a 'debtor repo' in respect of securities if all of Conditions A to E are met. Those conditions are as follows1:
- Ìý
•ÌýÌýÌýÌý Under an arrangement, the borrower receives from another person (the lender) an advance of money or other assets ('the advance') (Condition A).
- Ìý
•ÌýÌýÌýÌý The accounts of the borrower record a financial liability in respect of the advance for
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Web page updated on 17 Mar 2025 17:39