Implied Repo Rate

Implied Repo Rate

This Issue in United States

Concept of Implied Repo Rate in Futures Trading

In this context of financial law, the following is a definition of Implied Repo Rate: The rate of return that can be obtained from selling a debt instrument futures contract and simultaneously buying a bond or note deliverable against that futures contract with borrowed funds. The bond or note with the highest implied repo rate is cheapest to deliver.


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