In the wake of the financial crisis, the triparty repo market has become increasingly attractive to corporates that have cash to invest, yet are wary of counterparty risk – and of the impact of unfolding regulations.
Furthermore, there is strong industry sentiment to suggest that even more corporates will stream into this market. Why? Repurchase agreements (repos) are an ideal solution to the investment issues and dilemmas facing corporate treasurers today.
Jan Grauls, Collateral Product Manager, Euroclear explains.