fixed income

aanchalmaryada
Posts: 2
Joined: Sat Mar 07, 2015 7:07 am

fixed income

Postby aanchalmaryada » Sat Mar 07, 2015 7:09 am

what is the difference between derivatives and repo?

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

fixed income

Postby edupristine » Sat Mar 07, 2015 11:06 am

Hi, Derivatives are the instruments used for hedging and speculative purposes. derivatives derive their values from an underlying instruments like bonds, shares, currencies, etc.
Repurchase Agreement also known as repo are money market instruments to raise short term capital. In repo a party sells securities and then buy backs the securities (next day sometimes) at a higher price. For the party agreeing to purchase back security next day, this is a repo.


Return to “CFA Level I”



cron

Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.