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What i am trying to understand is, the Repo trader when he prices a Reverese repo to the sales team, how should it be priced? Usually Repo trader or ALM gets funded (FTP) by their Treasury Dept. Assuming in the 1 year,the Funding cost or FTP is at L+ 20bp. So if there is daily margining, and HC charged by the trader, does it mean that the Reverse repo rate charged by the trader be L+10%?.. and then the sales team can add a spread or markup.

Keeping in mind, if a bilateral loan was priced to the sales team, it will be L+10bps Thanks

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    $\begingroup$ Be specific in your question which is difficult to read. There are many setup in many different types of organizations. You are talking about repo transactions but your question refers to 1 year term. This does not make sense. Then what is ALM ? What is HC ? What is FTP ? You sound very confusing so try to make an effort to articulate your question more clearly thanks. $\endgroup$ – Ezy Jan 13 at 12:55

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