Shay maintains an active repo program for clients seeking funding and can accommodate borrowing needs with terms from a few days to several years with structures that include fixed, floating and "callable" features.
When initiating a repo, Shay arranges for a counter-party to buy a government security or similar asset from the institution seeking funding and in turn, specifies repurchase terms agreeable to both parties. Repos are considered financings rather than sales so no gain/loss on sale is recorded. Additionally, the borrowing entity can typically borrow 95% or more of the value of the securities used in the transaction. When the repo term expires, the borrower pays the original price, plus the previously agreed interest rate to the counter-party as payment for use of the funds.