So i'm doing research on the repo market, and what I found is the tri-party market connects broker/dealers with nonbank cash investors, primarily MMFs and SLs (where the insurance company would fall in). Where as the Bi-lateral market is where inter-dealer transactions happen and also where hedge funds act when in need of repo-ing. But also found that some of these regulated counterparties can also take part in the bilateral repo market. What im confused about is specifically how does an insurance company take place in both the tri-party repo market and the bi-lateral repo market. Are they borrowers in one and lenders in the other? what makes a tri-party repo a "tri-party repo"? If an insurance company can take place in both, where does the difference happens that distinguishes one transaction as a tri-party and a bilateral.
Sorry if not so clear, first post ever made. Can't find any concrete answers about this online, hoping someone can clear it up for my understanding.
Submitted August 07, 2017 at 03:12PM by kilimanjaro96 http://ift.tt/2vfa3GU