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 tn-party agent in the name of the buyer
D) It is frozen in the sellers account with the tri-panty agent

Question

Quizplus · Accepted Answer

In a tri-party repo, the collateral is held by the third-party agent in the name of the buyer. This allows for efficient transfer of ownership and management of the collateral throughout the life of the repo agreement, as well as providing an additional layer of security for both the buyer and seller.

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