The buyback agreement is also called “real repo” in the buyer`s “false” or “reverse repo.” Interest earned on reverse repurchase agreements and interest incurred on repurchase agreements is reported as interest income and interest expense, respectively. The Group has chosen to apply the fair value option to certain repurchase and reverse repurchase portfolios that are managed on a fair value basis. Securities purchased under resale agreements (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”) are treated as collateralized financings and are recognized initially at fair value, being the amount of cash disbursed and received, respectively. The party disbursing the cash takes possession of the securities serving as collateral for the financing and having a market value equal to, or in excess of the main amount loaned. The securities received under reverse repurchase agreements and securities delivered under repurchase agreements are not recognized on, or derecognized from, the balance sheet, unless the risks and rewards of ownership are obtained or relinquished. Security and securities lending and repurchase agreement (repo) transactions. Over-the-counter derivatives. B over-the-counter (ISDA and German framework contract), exchange and interest rate swaps, credit risk swaps, options, advances, loans and pensions, including insolvency advice (e.g..B. Compensation notices) OTC derivatives (ISDA agreement and German master agreement), such as currency and interest rate swaps, credit default swaps, options, forwards, securities loans and repurchase agreements including advice on insolvency law (e.g.
netting opinion) A repurchase agreement or repurchase operation operation, also known as the repurchase agreement) is a financial transaction combining the simultaneous sale and subsequent repurchase of a property (usually a security). This is a real pension transaction in which, for the duration, the seller`s right of ownership of the property is transferred to the buyer. The buy-back agreement is a short-term financial instrument of a duration usually between one day (then also known as overnight pension) and one year. In this context, there are five key areas relating to banking, asset management, securities lending and repurchase agreements, security, and other shadow banking entities where the Commission is further investigating options and next steps. In coordination with the SSC, the relevant standards bodies and EU supervisory and regulatory authorities, the Commission`s current work aims to carefully examine existing measures and propose an appropriate approach that, together with an appropriate regulatory framework, ensures full supervision of the shadow banking system. . Real and reverse pension transactions are not subject to revenue tax as financing transactions. The International Capital Market Association (ICMA) has developed a draft contract to distinguish between sales and buybacks.
Insurers and reinsurers who put or guarantee credit products. There are two types of repurchase agreements according to the specification of the securities used for protection, which are based on a different motivation: when the seller buys the bonds, the buyer receives the interest (reposatz) on the credit he grants, which relate exclusively to the identical purchase and sale price of the loan during the transfer period (the amount of which was the market value at the date of purchase haircut”).