What usually happens to the collateral in a tri-party repo?
A) It is put at the disposal of the buyer
B) It is held by the seller in the name of the buyer
C) It is held by the tri-party agent in the name of t
D) It is frozen in the sellers account with the tri-p

Question

Quizplus · Accepted Answer

In a tri-party repo, the collateral is held by the tri-party agent in the name of the buyer. The tri-party agent acts as an intermediary between the buyer and the seller, and provides services such as collateral management and settlement. This arrangement helps to mitigate counterparty risk and provides greater transparency and efficiency in the repo market.

What Usually Happens to the Collateral in a Tri-Party Repo