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Risk Transformation

A type of risk redistribution (financial transformation) in which financial intermediaries hold assets with higher risk of default than their...

Redistribution of Risk

A process whereby a financial institution capitalizes on mismatches between the two sides of its balance sheet (assets and liabilities)....

Rights-Off

A stock trading with rights off doesn't entitle the shareholder to receive rights to buy shares of a new stock...

Repo Leg

One of the two legs on which a repo transaction is set up. A repo is the sale of a...

Return Leg of a Repo

A repo leg that involves the transfer back of the cash amount that was initially borrowed, plus interest (accumulated on...

RP To Maturity

A repo (repurchase agreement, RP) in which close date is identical to or later than the maturity date of the...

Rebate

The amount of the sale price that a seller refunds (rebates) to a buyer, based on certain criteria or conditions...

Regulatory Haircut

In general, haircut involves a reduction in the level of a "monetary" amount that would otherwise be available for a...

Regulatory Capital Haircut

A haircut (margin discount) that is applied to a regulatory capital. This category of capital is defined as the minimum...

Repo Rate Spread

The difference between the general collateral rate (general repo rate) and the specific collateral rate (special repo rate): s =...