Repurchase Agreements (Repos)
Short-term, collateralised funding against eligible securities — equities, bonds, and money-market instruments — with clear title transfer, margining, and substitution mechanics.
The Structure, Explained
A repurchase agreement (repo) is a short-term funding instrument in which one party sells securities to another with a simultaneous agreement to repurchase them at a slightly higher price on a future date. The price difference represents the financing cost, and the securities serve as collateral for the cash advanced.
Repos are among the most capital-efficient forms of secured funding, allowing sponsors to access cash against high-quality collateral at competitive rates. They are particularly valuable for cross-border liquidity — funding can be drawn in one currency against collateral held in another, with the counterparty and jurisdiction chosen to optimise cost and access.
We structure and originate repos by connecting sponsors with the right repo counterparties, coordinating eligible collateral, margining, and the title-transfer documentation across jurisdictions.
Competitive Funding Rates
Because the cash is fully secured by eligible collateral, repo funding typically prices well below unsecured alternatives, especially against high-quality sovereign or investment-grade bonds.
Equities, Bonds & MMIs
A broad range of securities can serve as collateral — government bonds, investment-grade corporate bonds, listed equities, and money-market instruments — each sized with an appropriate haircut.
Funding In One Currency
A sponsor can draw funding in USD, EUR, or another currency against collateral denominated and held in a different currency — an efficient route to cross-border liquidity.
Title Transfer & Margining
Legal title to the securities transfers to the counterparty for the term, with variation margin and substitution rights agreed in advance to manage collateral value movements.
Flexible Tenors
Repos can be overnight, term, or open — letting sponsors match funding to the precise window they need without committing to a long-dated facility.
Short-Term Access
Repos are ideal for bridging short-term liquidity needs — working capital, margin, or settlement — without drawing on longer-term capital facilities.
Coordinated Across Jurisdictions
- 01Eligible collateral and haircuts differ by counterparty and jurisdiction; we match the sponsor’s collateral pool to the counterparty that will fund it most efficiently.
- 02Title transfer and bankruptcy remoteness depend on the governing law of the repo; we document under a framework (such as GMRA) that protects both parties across borders.
- 03Where collateral is held in one jurisdiction and funding drawn in another, custody, FX, and settlement must be coordinated to avoid friction at trade and at maturity.
- 04Margining and substitution rights are negotiated up front so that collateral value movements during the term are managed without disruption.
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ExploreDiscuss This Structure
If this instrument fits your opportunity, share it with us. Our teams will coordinate the structure across the relevant jurisdictions.
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