Monthly Archives: August 2010


European repo lenders accept Spanish bonds as collateral

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International banks have used a record amount of Spanish government bonds as collateral for repo loans, the Financial Times reported August. 26. Repurchase agreements are the key area for bank funding in Europe, write reporters David Oakley in London and … Continue reading


Re-use of collateral is major tool for leveraged finance

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Rehypothecation helps explain rapid bank growth in the years leading up to the financial crsis of 2007-2008 and even faster bank deflation since, according to a July 2010 study by International Monetary Fund senior economist Manmohan Singh. Specifics are hard … Continue reading