Categories
Resources for Accountants

The Repo Market Explained [Video]

The Repo Market Explained

While banks can raise funds from deposits and securitizations, they can also access short-term funds through the repo market.

In the repo market, organizations sell securities with an agreement to repurchase them at a higher price in the future (in many cases, they agree to repurchase the securities the next day).

The seller of the securities is known as the repo side, whereas the buyer of the securities is known as the reverse repo side.

The repo side is essentially executing a secured borrowing, while the reverse repo side is lending funds on a short-term basis.

The repo market is usually highly liquid and the cost of borrowing is low. This makes it a popular way to raise short-term funds. The repo term can be for a single trading day or multiple days; in some cases, it doesn’t have a set term.

Single trading day = overnight repo
Multiple trading days= term repo
No set term = open repo

Thus, if a bank has securities (e.g., Treasury bills) but it needs cash today, it can sell the securities with an agreement to repurchase them the next day.

The repo side (the borrower) remains the owner of the security and gets any coupon payments or dividends attributed to the security.

The reverse repo side (the lender) profits by selling the securities back to the repo side at a higher price. The difference between the selling price and the repurchase price is implicit interest:

repurchase price – selling price = interest

The repurchase price (and hence the interest) is determined using the repo rate.

If the repo side can’t come up with the funds to execute the purchase, the reverse repo side can take possession of the securities and liquidate them to ensure repayment. However, there is a risk the securities will have declined in value and the reverse repo side won’t be able to recover the amount they lent. For this reason, the reverse repo side won’t lend the full amount of the securities’ value. The difference between the value of the securities and the amount of cash lent is called a haircut:

cash lent – value of security = haircut

The repo market is used by banks, mutual funds, hedge funds, pension funds, etc.

In the U.S., the repo market is also used by the Federal Reserve as part of its open market operations.

Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.

SUBSCRIBE FOR FREE PDF GUIDES TO THE FINANCIAL STATEMENTS, MANAGERIAL ACCOUNTING, TAX, AND MORE
* http://eepurl.com/dIaa5z

HIRE MICHAEL MCLAUGHLIN, PHD, CPA
* https://michaelmclaughlin.com/hire-me

GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
* https://edspira.thinkific.com

LISTEN TO THE SCHEME PODCAST
* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725
* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc
* Website: https://www.edspira.com/podcast-2/

GET TAX TIPS ON TIKTOK
* https://www.tiktok.com/@prof_mclaughlin

ACCESS INDEX OF VIDEOS
* https://www.edspira.com/index

CONNECT WITH EDSPIRA
* Facebook: https://www.facebook.com/Edspira
* Instagram: https://www.instagram.com/edspiradotcom
* LinkedIn: https://www.linkedin.com/company/edspira

CONNECT WITH MICHAEL
* Twitter: https://www.twitter.com/Prof_McLaughlin
* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin

ABOUT EDSPIRA AND ITS CREATOR
* https://www.edspira.com/about/

Watch/Read More
Categories
Resources for Accountants

30-Day Roadmap for New Controller or CFO (My Blueprint) [Video]

Join 10,000+ professionals who enrolled in the Controller Academy 🚀 https://controller-academy.com/courses/controller-academy Get your copy of the 30-day roadmap: https://thefincontroller.com/p/30dayroadmap I am a CPA in the United States and I summarize in the video what new Controllers and CFOs need to focus on during their first 30 days in the role. Videos mentioned during this tutorial: Balance Sheet Reconciliation: https://youtu.be/rXavkEg4Ht0 How to create month-close checklist https://youtu.be/m_SfIf8PKpg Time Stamps: 00:00 Intro 00:36 Agenda 01:15 1. Financial Statement Review 02:46 2. Budget 04:50 3. Internal Controls 08:45 4. Systems 12:41 5. Month-end 14:31 6. People 17:15 7. Compliance 20:15 8. Create 90 day roadmap ----------------------------------- Hang Out with me on social media: 📸 https://www.instagram.com/the_financial_controller/ 📱https://www.tiktok.com/@thefinancialcontroller https://www.linkedin.com/in/bill-hanna-cpa-7653a851/ DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week! All views expressed on my channel are mine alone. Not intended as financial or professional advice

Categories
Resources for Accountants

How to Transition from Startup to Established Company [Video]

The journey from a fledgling startup to an established company is akin to scaling a mountain—fraught with challenges, but also promising breathtaking vistas of growth and success. This transition marks a pivotal moment in the entrepreneurial odyssey, where the agility and creativity that characterized the startup phase must harmonize with the stability and maturity necessary for long-term sustainability. It's a delicate balance, requiring strategic foresight, operational finesse, and unwavering commitment. In this guide, we'll delve into the multifaceted process of transitioning from a startup to an established company, exploring key strategies and best practices to navigate this transformative journey.

Categories
Resources for Accountants

How to Start a Supermarket Business | Free Supermarket Business Plan Included [Video]

Presenting 50 essential tips for starting a Supermarket business.Now you can get your free business plan template gift here: https://www.bizmove.com/business-gifts.htm This is a high quality, full blown business plan template that you can download and modify to create a quality business plan tailored to your business idea.It comes complete with detailed instructions and all the related spreadsheets. Allows you to easily prepare a professional business plan for your new businessAlso get free small business guides, tools, and worksheets at: https://www.bizmove.com

Categories
Resources for Accountants

Best US CPA Exam Questions FAR 2023 [Video]

US CPA Exam Questions FAR 2023 is available for subscription from https://zainacademy.us/product/cpa-exam-questions-far-2023/ US CPA Test Bank FAR 2023 contains the 1,800 + multiple choice questions to help you pass US CPA Exam in 1st attempt of American Institute of Certified Public Accountants (AICPA), US.FAR stands for Financial Accounting and Reporting and it is one the challenging US CPA Exam Part. US CPA Exam Questions FAR are also referred to as US CPA Test Bank FAR or US CPA Practice Questions FAR or US CPA Questions and Answers FAR or US CPA Question Bank FAR.Now let’s explore the features of US CPA Practice Questions FAR 2023:• 1,800 + multiple choice questions with explanations of all answer choices• Challenging Questions for Brain• Attempt all possible exam formats• Direct Access to Author helping you in each stage of preparation• Ask Unlimited Questions through WhatsApp (+92 311 222 4261) or Email and get answers to them instantly• US CPA Test Bank are designed for working executives smart learning• Optimized for all screen sizes• Unbeatable Pricing• US CPA Sample Questions FAR are available for free• Aligned 100% with US CPA Course of FARThe benefits of subscribing to the US CPA Questions and Answers FAR 2023 are:• Pass US CPA Exam of FAR in 3 months• Aligned with the AICPA FAR Practice Exam• Get US CPA Certificate with 100% confidence• 360 degrees level of learning• Guaranteed 90% result• Access Until You Pass• No Time and Device Restrictions• Save Time, Money, and Energy• Guidance & Support 24/7• Develop a creative mindset to solve business challenges• Elevate Your Career Prospects• You will not be required to refer to any other US CPA Test Prep available on the planet• Find Yourself and your capability. Time is limitedBecome a US Certified Public Accountant to change your world, well-being and most important yourself.Zain Academy’s purpose is to create the best US CPA Course at affordable pricing. You will get 100% confidence, support, and a guaranteed 90% result.Follow the Zain Academy’s Facebook Page for the latest updates, communications, and reviews.Subscribe to Zain CPA Test Bank FAR 2023 and start the journey of professional excellence.Social Media Presence Web: https://zainacademy.us/ Web: https://mzain.org/ Facebook: https://www.facebook.com/zainacademy YouTube: https://www.youtube.com/c/zainacademy LinkedIn: https://www.linkedin.com/in/mzainhabib/ Twitter: https://twitter.com/mzaincpacmacia Instagram: https://www.instagram.com/mzain.cpa.cma.cia/ Pinterest: https://www.pinterest.com/mzainhabib/ Amazon: https://www.amazon.com/MUHAMMAD-ZAIN/e/B07K2G2R8MTikTok: https://www.tiktok.com/@zain_academy WhatsApp: https://wa.me/923112224261#USCertifiedPublicAccountant #USCPA #USCPAExam #AICPA #USCPACertification #USCPACourse #BestCPATestBank #BestCPAExamQuestions #USCPATestBankFAR #USCPAExamQuestionsFAR #USCPAQuestionBankFAR #USCPAPracticeQuestionsFAR #USCPAQuestionsandAnswersFAR #FAR #FinancialAccountingandReporting