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