Record Details

Opinion: Is the repo a derivative?

African Review of Economics and Finance

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Field Value
 
Title Opinion: Is the repo a derivative?
 
Creator Faure, P
 
Subject —
 
Description An explanation of a derivative instrument (forward, future, swap, option, etc) generally encompasses that the instrument is derived from, i.e. is based on, certain, or aspects of certain, financial market instruments, and takes its value largely from these or other instruments or markets. Explanations also refer to the underlying instrument. No textbooks regard the repurchase agreement (repo) as a derivative instrument. This article argues that the repo is derived from an existing financial market instrument (the underlying instrument) and takes its value from another segment of the financial market. As such, it should be regarded as a derivative instrument. In addition, the use of the word repo is often misrepresented, and the mathematics involved in repos is not readily available in the literature. This article endeavours to address these issues.
 
Publisher Rhodes University
 
Contributor —
 
Date 2013-03-28
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.ajol.info/index.php/aref/article/view/86956
 
Source African Review of Economics and Finance; Vol 2, No 2 (2011); 193-203
2042-1478
 
Language eng
 
Relation https://www.ajol.info/index.php/aref/article/view/86956/76734
 
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