Repo (Repurchase Agreements)

Repo (repurchase agreements) course overview

This Repo course examines the core concepts of short-term funding. We will look at the different types of Repos, alongside who would use them and why, while assessing the risks of the trade along the way. From the nuances of what motivates a Repo trade, to how to calculate payments, we will go through the broadest concept to the smallest detail.

Repo (repurchase agreements) learning objectives

This Repo course will give you a practical understanding of how the Repo market allows financial institutions that own large volumes of securities to borrow cheaply, while simultaneously allowing others that hold excess cash to earn small returns with low risk.

Major learning outcomes of this course include being able to:

• Explain the full life cycle of a Repo trade from the perspective of both counterparties
• Calculate Repo Interest, as well as security generated income (i.e. coupon), and understand their treatment 
• Identify the differences between General Collateral and Special Repos, and in what scenario each trade type is used
• Compare and contrast the differences between Repos/Reverse Repos and Buy Sell Backs/Sell Buy Backs
• Appreciate the risks associated with entering into Repo trades and how they can be managed
• Explain the concept of negative rates in the Repo world and understand their significance

Repo (repurchase agreements) is an elective course of CFI’s CMSA® program

CFI’s Capital Markets & Securities Analyst (CMSA)® program covers all the basic, intermediate, and advanced topics about sales and trading, investment banking, and asset management. This program immerses you in the content you would be exposed to, and the knowledge you would learn through peers, in the first few years of a capital markets role. This course is ideal for students who want to learn about the short-term funding space in capital markets. The program is completely online so you can take it at your own pace, from anywhere in the world.

Common career paths for students who take the CMSA® are Sales & Trading, Origination, Asset Management, Wealth Management, Treasury, Risk Management, and other Capital Markets careers.

Who should take this CMSA® course?

This Repo (Repurchase Agreements) course is perfect for anyone looking to build a fulsome knowledge of Capital Markets. This course is designed to help those who are interested in careers in portfolio management, as well as sell-side trading, develop an understanding of how financial institutions use their assets to borrow and lend cheaply and efficiently. 

This course explores concepts that will be useful for beginner and intermediate level Capital Markets professionals, or business and finance students seeking to better understand money market products.