It's the fast-paced, high-pressure world of car repossession with a team of highly-trained professionals from California's San Fernando Valley. No matter how angry you get, they're taking back your car.

Operation Repo - Netflix

Type: Reality

Languages: English

Status: Ended

Runtime: 30 minutes

Premier: 2008-11-17

Operation Repo - Repurchase agreement - Netflix

A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a transaction concluded on a deal date tD between two parties A and B: (i) A will on the near date

t                      N                                {\textstyle t_{N}}   sell a specified security S at an agreed price PN to B

(ii) A will on the far date tF (after tN) re-purchase S from B at a price PF which is already pre-agreed on the deal date. If positive interest rates are assumed, the repurchase price PF can be expected to be greater than the original sale price PN. The (time-adjusted) difference

P                                  F                                            −                              P                                  N                                                                    P                              N                                                    ∗                              365                                          t                                  F                                            −                              t                                  N                                                                          {\textstyle {\frac {P_{F}-P_{N}}{P_{N}}}{\frac {365}{t_{F}-t_{N}}}}   is called the repo rate, which is the annualized interest rate of the transaction.                                                                         P                                  F                                            −                              P                                  N                                                                    P                              N                                                    ∗                                                            t                                  F                                            −                              t                                  N                                                      365                                {\textstyle {\frac {P_{F}-P_{N}}{P_{N}}}-t_{N}}{365}}}   can be interpreted as the interest rate for the period between near date and far date.

Operation Repo - History - Netflix

In the US, repos have been used from as early as 1917 when wartime taxes made older forms of lending less attractive. At first repos were used just by the Federal Reserve to lend to other banks, but the practice soon spread to other market participants. The use of repos expanded in the 1920s, fell away through the Great Depression and WWII, then expanded once again in the 1950s, enjoying rapid growth in the 1970s and 1980s in part due to computer technology. In 1982, the failure of Drysdale Government Securities led to a loss of $285 million for Chase Manhattan Bank. This resulted in a change in how accrued interest is used in calculating the value of the repo securities. In the same year, the failure of Lombard-Wall, Inc. resulted in a change in the federal bankruptcy laws pertaining to repos. The failure of ESM Government Securities in 1985 led to the closing of Home State Savings Bank in Ohio and a run on other banks insured by the private-insurance Ohio Deposit Guarantee Fund. The failure of these and other firms led to the enactment of the Government Securities Act of 1986. In July 2011, concerns arose among bankers and the financial press that if the 2011 U.S. debt ceiling crisis lead to a default, it could cause considerable disruption to the repo market. This was because treasuries are the most commonly used collateral in the US repo market, and as a default would have downgraded the value of treasuries, it could have resulted in repo borrowers having to post far more collateral.

Operation Repo - References - Netflix