1
عمومی::
مخزن وام
If a borrower defaults, the repo lender legally owns the collateral immediately without having to claim it in bankruptcy procedures.
The repo lender can sell the collateral instantly on the market to recover the loss on the repo loan.
A repo is usually collateralized with financial assets that feature high market liquidity. 6 If the borrower defaults, the repo lender can sell the collateral quickly and does not have to worry about current market conditions.
Therefore, the repo lender will request a security as collateral that is considered very safe, such as a U.S.
In this case, the collateral no longer fully protects a repo lender from credit risk.
واژگان شبکه مترجمین ایران