A chronicle of repurchase agreements (RP) and other paradoxical property ownership contracts - www.omo.co.nz

 

IBRD sells NZ$ 986million uridashi (10 March 2004)
Issuer                 International Bank for Reconstruction and
                             Development (World Bank or IBRD)
Sector                 Supranational
Issuer                 rating AAA/Aaa/AAA
Facility                 Fixed rate EMTN uridashi
Amount               NZ$986million
Maturity              10 March 2006
Set date              11 March 2004
Coupon               4.71 per cent
Issue price         100
Structure             Plain vanilla
Lead(s)                Daiwa SMBC
Offering period 1 to 9 March

Uridashi means capital issues destined for private investors in Japan on a secondary re-issue basis, whereas Eurokiwi issues are generally destined for European private investors, i.e. "The Belgium Dentist". Nevetheless, they share the same characteristics - more detail here.

This deal took the NZD to 0.7100 vs USD

Home

©2008  Open Market Operations Limited.  All rights reserved.

E-mail

 

 

 

OMO Matters

US Federal Reserve Reference Publications

"The market for repurchase agreements on US government securities is of vital importance to the New York Fed, and the whole Federal Reserve System, because it is where virtually all of our monetary policy operations are conducted."- Peter Fisher, Manager, System Open Market Account - 15 January 1997.

"Open market operations are not another weapon in the Fed's arsenal, but the only weapon in its arsenal." - Monetary Trends, St Louis Federal Reserve, August 2003.

Repurchase Agreements with Negative Interest Rates - FRBNY - A primer detailing how short sales of Treasury securities can lead to protracted RP fails and consequently negative rates to address capital requirement issues.

OMO-Repo Misuse - Letters to Hon. Dr. Michael Cullen, N.Z. Minister of Finance.

Repo Transaction Accounting. Letter to Mr A Orr, RBNZ.

IMF Repo Accounting Examples, Full Article

NZ Debt Management Office Uridashi issue and associated EuroKiwi letters to Hon. Dr. Michael Cullen, N.Z. Minister of Finance.