that different interests in a loan are notinterchangeable in the same way as securitiesAccordingly the recharacterisation risk of a repoof loans was considered too high for such a repoto be entered in ID: 856913
Download Pdf The PPT/PDF document "Repos of Loans NowPossible ..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
1 Repos of Loans - Now Possible
Repos of Loans - Now Possible By Angus Duncan and Robert Cannonof Cadwalader, Wickersham & Taft LLPRepurchase agreements or repos are now thelegal structure most commonly used for theprovision of funding between financialinstitutions. Up to now, legal risk issues havemeant that repos have only been used to providefunding against securities. Now, legal changesthat remove these legal risk issues mean that that different interests in
2 a loan are notinterchangeable in the sa
a loan are notinterchangeable in the same way as securities.Accordingly, the recharacterisation risk of a repoof loans was considered too high for such a repoto be entered into.Effect of Financial Collateral Directive on reposThe 2002 EU Financial Collateral Directive (theFinancial Collateral Directive),1 implemented 2 Statutory Instrument No. 3226/2003.3 Statutory Instrument No. 2993/2010. 4 EU countries plus Norway, Iceland and Liechtenstein.