Mutual Fund Repurchase Agreement

13 The term “resale price” is defined in Rule 5b-3 (c) (7) as the purchase price paid to the seller, plus the accumulated resale premium, i.e. the return on investment indicated in the agreement. In 2007-08, a rush to the renudisument market, where investment bank financing was either unavailable or at very high interest rates, was a key aspect of the subprime mortgage crisis that led to the Great Recession. [3] In September 2019, the U.S. Federal Reserve intervened in the role of the investor in providing funds in the pension markets, when overnight interest rates increased due to a number of technical factors that limited the supply of available resources. [1] [4] [2] [2] 31 Investment Company Act Release No. 13005 (Feb. 2, 1983) [48 FR 5894 (February 9, 1983] did not mention the type of guarantee, but merely found that the securities most used in pension transactions are treasury bills and other U.S. government securities.” A repo implies that the stockholder (Stock Exchange) sells part of its securities to an investor (it) as part of an agreement that will be redeemed at a predetermined price at a later date. The amendment to Rule 12d3-1 removes the “note” of the rule that makes the rule unavailable for pension transactions. This amendment will provide the funds with additional flexibility without compromising investor protection.

Treatment of reass and refunded securities as the acquisition of underlying securities The pension market is one of the largest and most active sectors in the short-term credit markets and is an important source of liquidity for money funds and institutional investors. Pension transactions (also known as resean agreements) are short-term secured loans, often obtained by traders (borrowers) to finance their securities portfolios and by institutional investors (lenders), such as money funds and securities lenders, as sources of secured investments. The Commission considered whether this regime would promote efficiency, competition and capital formation. As a general rule, the rule changes codify the requirements for the control of pension transactions and pre-financed obligations on the underlying securities for the purpose of complying with paragraphs 5 (b) (1) and 12 (d) (3) of the Act. In recent years, the funds have passed pension transactions and pre-financed bonds, in accordance with non-action staff positions. The few changes made by the rule and rule changes are generally intended to take into account recent developments in bankruptcy legislation in the protection of buyback contracts and to adapt the law to the economic conditions of pension transactions and pre-financed bonds. These changes are not expected to have a significant impact on funds. In addition, since the application of Rule 5b-3 is optional, funds may consider consideration for pension transactions and not underlying securities to meet the diversification requirements set out in Section 5 (b) (1). Given these factors, we believe that rule and rule changes will not have a significant impact on efficiency, competition and capital formation.

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