What Is Repo 105?

Repo 105 is an accounting technique that Lehman Brothers Holdings Inc. used to temporarily remove up to $50 billion of assets from its balance sheet in the months leading up to its 2008 bankruptcy.

The technique involved selling securities to an investment bank and then immediately agreeing to buy them back at a higher price, with the difference being recorded as a "repurchase agreement" or "repo" on Lehman's balance sheet. Because the securities were not actually sold, they remained on Lehman's books, but were classified as "sold" for accounting purposes.

The effect of this was to make Lehman's balance sheet appear healthier than it actually was, as the assets were removed from it temporarily. The technique was legal, but it was criticized by some for giving a false impression of Lehman's financial health. What is SLR and CRR? In accounting, SLR and CRR are two important ratios that are used to assess a company's financial health. SLR is the ratio of a company's total liabilities to its total assets, while CRR is the ratio of a company's current liabilities to its total assets.

Both ratios are important in assessing a company's financial health because they provide insights into a company's ability to meet its financial obligations. A high SLR ratio indicates that a company is heavily leveraged and may have difficulty meeting its debt obligations. A high CRR ratio indicates that a company is heavily reliant on short-term financing and may have difficulty meeting its short-term financial obligations.

What is repo database?

A repo database is a type of accounting database that is used to track the repurchase agreements between banks and other financial institutions. These agreements are typically used to raise short-term capital, and the repo database helps to keep track of the terms of each agreement, as well as the collateral that is being exchanged.

What does the word repo stands for?

In the world of finance, the term "repo" refers to a repurchase agreement. A repurchase agreement is a short-term loan that is typically used by banks and other financial institutions to raise capital. The loan is secured by collateral, typically government bonds or other financial instruments. The borrower agrees to repurchase the collateral at a later date, usually at a higher price, thereby providing the lender with a return on investment.

What is a repo in tech?

A repo is a type of financial transaction in which one party sells an asset to another party with the agreement to buy the asset back at a later date. The asset is typically collateral for a loan, and the transaction is often used to raise short-term capital. What is repo unit? A repo unit is a measure of the size of a repurchase agreement transaction. In a repurchase agreement, also known as a repo, one party sells securities to another party and agrees to buy them back at a later date. The repo unit is the number of securities that are traded in a repo transaction.