Although the transaction resembles a credit and its economic impact is similar to a credit, the terminology differs from that of credit: the seller legally buys the securities from the buyer at the end of the loan period. However, one of the essential aspects of rest is that they are legally recognised as a single transaction (significant in the event of the insolvency of the counterparty) and not as an assignment and redemption for tax purposes. By structuring the transaction as a sale, a repo offers lenders considerable protection against the normal operation of U.S. bankruptcy laws, such as. B automatic suspension and avoidance provisions. . . .
No se admiten más comentarios