Use "repo" in a sentence

1. They're known as repositioning or "repo" cruises in the

2. in imaging methodology are unlikely to explain the differences in the results (Repo

3. Loosely speaking, a leveraged corporate–Treasury trade involves funding the long corporate bond position at a high rate (near the LIBOR deposit rate) while borrowing Treasuries (for the purpose of shorting them) at a less advantageous repo rate (near the Treasury bill rate)

4. (When Treasuries are borrowed, cash must be left at the bond lender as security; it is compensated with the general collateral repo rate or an even lower special repo rate

5. ) To proxy for this effect, I subtract from the positive carry of the asset legs (say, 2-year corporate bond minus Treasury spread) the negative carry of the financing legs (using one-month repo minus LIBOR)

6. As noted above, the expected average spread between LIBOR and the general repo rate—plus any “specialness” of the on-the-run bond in the repo market—should anchor the swap–Treasury spread

7. As a good approximation, corporates can be financed at deposit rates (such as LIBOR) while government bonds can be financed at repo rates, which are lower: either the general collateral (GC) rate or the even lower special repo rate