News
May 31, 2006
One of the largest and most important of the money markets is the market
for repurchase agreements. In a repurchase agreement, a borrower of money
effectively agrees to provide securities as collateral to the lender to
mitigate credit risk. GCF Repo is a recent innovation in this market that
reduces transaction costs, enhances liquidity, and facilitates the efficient
use of collateral.
Repurchase agreements ("repos" or "RPs") play a crucial role in the efficient allocation of capital in financial markets. They are widely used by dealers to finance their market-making and risk-management activities and they provide a safe and low-cost way for mutual funds, depository institutions, and others to lend surplus funds
Authors: Michael J. Fleming and Kenneth D. Garbade
Of the Federal Reserve Bank of New York
Who is South Street Securities
South Street Securities is a FINRA member broker dealer primarily focused on the financing of a matched book of US Government and Agency Repurchase Agreements.
SSS has received a counterparty credit rating of AAA by S&P. This rating applies to the company and not necessarily to the securities or products being offered. Having achieved the industry's highest credit rating, SSS offers one of the safest and securest methods for investors in repurchase agreements.