[Repos] Hot Collateral

Does it refer to collateral that’s in high demand, and would therefore reduce the repo rate?
 
a particularly sought-after security (eg might be a particular maturity or whatever) - that can attract a lower repo rate below the normal prevailing rate
 
The question was regarding what factor would least likely cause a lower repor rate from the perspective of the lender.
a - delivery of collateral to the lender
b - collateral with a short term to maturity
c - hot collateral
The answer was b, as the underlying collateral does not affect the repo rate; the term of the repo does.
yeah I think you are right.
 
delivery would cause lower repo rate because it removes default risk
hot collateral cases lower repo rate because it is in high demand
short term to maturity? - depends on the shape of the curve
so, not clear cut, but b is best guess
 
All right null, expect that the short term to maturity is the underlying securities, not the repo term. If it were the repo term you would be right there.
 
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