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A comment on Repo Blowup Was Fueled by Big Banks and Hedge Funds, BIS Says. Parent comment

Re:Repo Blowup Was Fueled by Big Banks and Hedge Funds, BIS ... by maest on Monday December 09, 2019 @12:03PM (#21744218)
Financial securities have little utility past their monetary value.

Off the top of my head, you give up on any cashflows, such as dividends/interest from the security and maybe also some anciliary rights, such as voting rights or whatever rights bondholders get.

However, you account for forgone cashflows by adjusting the repurchase price accordingly. As for the rights, you can recall the repo (it's usually done overnight).

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Re:Repo Blowup Was Fueled by Big Banks and Hedge Funds, BIS ... by salawat on Monday December 09, 2019 @12:23PM (#21744403)
>Voting rights

I'd say that represents a very different transaction Still depending on where or not an important vote is coming up in the meantime, and who you are selling your voting stake to.

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