Jul 12, 2013 06:41
10 yrs ago
3 viewers *
Spanish term
Spain
A unique combination of skills
Native in: English 
Works in: Spanish to English, Catalan to English, English to Spanish, and 1 more.
arbitraje DEPO-REPO
Spanish to English
Bus/Financial
Finance (general)
test material
Comes without any other context.
I believe REPO is referring to a buyback/repurchase agreement. It's the DEPO part I'm more interested in.
Sorry I can't give more info.
I believe REPO is referring to a buyback/repurchase agreement. It's the DEPO part I'm more interested in.
Sorry I can't give more info.
Proposed translations
(English)
| 3 +1 | depo-repo arbitrage |
Helena Chavarria
|
Proposed translations
+1
2 hrs
Helena Chavarria
Spain
Spain
Native in English
Works in field
Spain
Striving for excellence
Native in: English (Variant: British)
Works in: Spanish to English, Catalan to English
Related KudoZ points
:
151
Selected
depo-repo arbitrage
Money markets increasingly pricing in ECB depo rate cut
http://www.reuters.com/article/2012/06/25/markets-money-idUS...
ECB checking with banks about potential negative depo rates
May 17th, 2013 10:58:04 GMT by Mike Paterson | 2 Comments
Talk out there that the ECB has been checking with banks to see how prepared they are to deal with negative deposit rates should they be needed
http://www.forexlive.com/blog/2013/05/17/ecb-checking-with-b...
Page 65: Depo/repo spread: differential prevailing in the market between the interest rate of
unsecured and secured transactions.
http://www.ecb.eu/pub/pdf/scpops/ecbocp1.pdf
However, Münchau was wrong in that the ECB did not just raise the repo rate while keeping depo at 25bp. They also raised de depo rate to 50bp. This, I think, is true insanity. But it is consistent with the ECB's view of things.
http://www.eurotrib.com/comments/2011/4/7/8503/08915/1?mode=...
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Note added at 3 hrs (2013-07-12 10:13:59 GMT)
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I'm still looking!
Introduction to Repo
The age of innocence – when banks lent to each other
unsecured for three months or longer at only a small premium
to expected policy rates – will not quickly,
if ever, return.
Mervyn King – Governor of The Bank of England
Benefits of Repo (1/3)
n Firm Financing
n Borrowing securities to cover an outright short position in the
cash market
n Financing long securities position by lending them out via repo
n Lower Financing Costs
n Secured cost of funds is lower than unsecured money market funds for
financing security portfolios
http://www.clearstream.com/ci/dispatch/en/binary/ci_content_...
If you don't like 'depo' you could use 'unsecured deposit' or 'unsecured money market funds'
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Note added at 7 hrs (2013-07-12 13:46:39 GMT)
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An explanation of 'arbitrage':
In economics and finance, arbitrage /ˈɑrbɨtrɑːʒ/ is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
http://en.wikipedia.org/wiki/Arbitrage#Depository_receipts
http://www.reuters.com/article/2012/06/25/markets-money-idUS...
ECB checking with banks about potential negative depo rates
May 17th, 2013 10:58:04 GMT by Mike Paterson | 2 Comments
Talk out there that the ECB has been checking with banks to see how prepared they are to deal with negative deposit rates should they be needed
http://www.forexlive.com/blog/2013/05/17/ecb-checking-with-b...
Page 65: Depo/repo spread: differential prevailing in the market between the interest rate of
unsecured and secured transactions.
http://www.ecb.eu/pub/pdf/scpops/ecbocp1.pdf
However, Münchau was wrong in that the ECB did not just raise the repo rate while keeping depo at 25bp. They also raised de depo rate to 50bp. This, I think, is true insanity. But it is consistent with the ECB's view of things.
http://www.eurotrib.com/comments/2011/4/7/8503/08915/1?mode=...
--------------------------------------------------
Note added at 3 hrs (2013-07-12 10:13:59 GMT)
--------------------------------------------------
I'm still looking!
Introduction to Repo
The age of innocence – when banks lent to each other
unsecured for three months or longer at only a small premium
to expected policy rates – will not quickly,
if ever, return.
Mervyn King – Governor of The Bank of England
Benefits of Repo (1/3)
n Firm Financing
n Borrowing securities to cover an outright short position in the
cash market
n Financing long securities position by lending them out via repo
n Lower Financing Costs
n Secured cost of funds is lower than unsecured money market funds for
financing security portfolios
http://www.clearstream.com/ci/dispatch/en/binary/ci_content_...
If you don't like 'depo' you could use 'unsecured deposit' or 'unsecured money market funds'
--------------------------------------------------
Note added at 7 hrs (2013-07-12 13:46:39 GMT)
--------------------------------------------------
An explanation of 'arbitrage':
In economics and finance, arbitrage /ˈɑrbɨtrɑːʒ/ is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
http://en.wikipedia.org/wiki/Arbitrage#Depository_receipts
Peer comment(s):
| neutral |
Charles Davis
: What held me back from posting this was that I couldn't find any references to depo-repo (or indeed repo-depo) arbitrage, which made me wonder whether it's expressed differently in English.
5 mins
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Yes, I know what you mean, which is why I've only given a confidence level of 3. I've been researching since before you posted your comment and I'm still looking!
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| agree |
philgoddard
: I had similar thoughts to Charles, but I think this has to be the answer. Your ECB reference clinches it for me.
4 hrs
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Thank you, Phil :)
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4 KudoZ points awarded for this answer.
Comment: "I agree that Google hits for this are practically non-existent, but the reference on the BCE page confirms it for me. Thanks for your time and help."
Discussion
DEPO-REPO arbitrage but haven't got time to back it up.
"Un Repo es un préstamo de dinero con una entidad financiera con un pacto de recompra. [...]
El arbitraje Repo-Depo es utilizado diariamente por las entidades financieras para financiarse unas a otras según la necesidad de dinero que tengan mediante los intermediarios financieros o "brokers".
Los repos tienen menos riesgo, dado que la entidad te presta un activo de renta fija, que en caso de impago tienes en tu poder un activo de renta fija que al vencimiento su interés está garantizado.
En cambio los Depos (Depósitos) tiene más riesgo porque el que presta dinero no recibe nada a cambio hasta la fecha del vencimiento que recibirá el valor de total (nominal) más los intereses pactados."
http://miedoyavaricia.es.tl/Repo.htm
However, although repo arbitrage is a common term, I don't know how "depo repo" should be formulated in English.