Repurchase Agreements (Repo transactions)

Love your gold chain lol

like a pawn shop?

Thank you❤

one doubt, in repo loan, the gov securities are 1. sold and repurchased or 2. pledged, the ownership is transferred to central bank or retained by the bank themselves, and interest on gov securities is collected by whom the central bank or the bank itself, suppose if the ownership is transferred to the central bank then the interest is collected by central bank and after repurchase will the central bank return those interest to the bank or not, in case of pledging the interest payments are collected by bank i have no doubt on that, can anyone explain this soon ??

The example you used to define Repurchase agreement sound like bonds

Khan Academy to the rescue! As many have stated already, it would be really nice if you could revisit this topic again. I know the basics will remain the same but even though this video is "only" 13 years old, the modern world is very different now.

After hearing the word "repo" for 1 million times today I actually understood its meaning
Thank You so much

This video is very helpful for a beginner like me. Can you also create a video where haircuts and margins are applied. I heard that that Haricuts means purchasing an item lower than it's value, say from $100, you purchased it at $90. My question is that when the item was purchased back,what will be the value of item? Is it $100 + interest or $90 +interest. Thank you

Perfect

all this bs could have been explained under a minute. what a waste of time

I think the Fed delivers Reserves, not cash. Reserves do not pay interest but allow the Bank to lend more money. When the bank lends money the money is created

you need to clarify the content

Timeless video considering how insane the Reverse repo market is right now in the FED 1.8 Trillion worth of activity!!!

Great video. More to the REPO mechanism, may I ask how long usually is the repurchase date and what kinds of securities does the Fed accepts?

thankyou for this! i really enjoyed watching this video it was funny😂

Really good work, explaining the repo market in a simple yet elegant way. Thank you

Remake plis

So this nicely done video was posted 12 years ago wow

Man would I like to see this topic revisited by Khan academy based on today's economic trends!

The teacher show his true nature he was actually a bank man with a mustache

Isn't this video offensive to jews?

Gammon?

great explanation, so repo is selling cheap and buying expensive what is yours from the same party because you desperately needed cash?)

are they explaining to children? go to kindergarden hey man.....

Needlessly complex

What happens when the bank can't pay back the fed with interest

Is this the same process for the Bank Of England?

who's here after Fed pumped 1.5 Trillion in 2020 Coronavirus pandamic

This dude used to work at a hedge fund. Stoinkers

Buy it back for 10001.

So is the discount rate the same as the reverse repurchase rate in the case that a commercial bank borrows money from the Fed under repurchase agreement?

A drawing of a guy with thick moustache and a hat; definitely JP Morgan.

Is not it wrong side of balance sheet? When bank sells treasury note to fed with an agreement to repurchase it, should not it be reflected as a repo trasanction, so liability (funding) side?

money cannot buy happiniess

really nice explanation....

I would think that the lender would give you $20k for the difference. In the world, especially nowadays, it should be that way.

Who's watching in 2019? 😆

Nicely explained 🤗

Awesome! Best Fed.Repo explanation ever! thank you

Can explain all this with one word “pawnshop”....... everybody knows how that works.

This video was made a month before the stock market bottomed.

The big banks’ pawn shop

who else came here because of potential 2020 market crash?

Fast forward January 2021, President elect Andrew Yang appoints Salman Khan to be the Treasury Secretary of the United States 😎

Why is there a spike in the Repo Market today ? , why are so many banks short of cash ?

Apparently there was a panic in the repo market today so I’m watching this to try understand what happened...

Hey Sal, your example is getting more insane, lol

Cool