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
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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.