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In contrast to general collateral (GC) repo rates, which of the following is true about special repo rates?
A
Special rates are typically less than general collateral rates.
B
If the counterparty's primary motivation is to lend cash rather than borrow a security, the special rate applies.
C
Special rates are well-suited to repo investors who are looking to obtain the highest rate for the collateral they are willing to accept.
D
The most commonly cited special rates are for overnight repos where any U.S. Treasury collateral is acceptable.