Jamal Awil

← An Engine, Not a Camera

See appendix F. [fact]

The interest rate at which repo can be used to borrow money to buy bonds is called "repo rate." (See appendix F.) Because the bonds are held by the creditor as collateral, and because a "haircut" protects against the consequences of default, repo rate is typically lower than Libor (by 20 basis points at the time we are discussing).

Donald MacKenzie, An Engine, Not a Camera, loc. 1298