So a company can post collateral to borrow money (repo agreement) and they may have different options of collateral to post. I have to pay a return on their collateral while I hold it. Since, at the end of the day a human has to post that, they might not post collateral that gets the best return. If they do an audit or something and find that they can sub a bunch of stuff for a better return, I'll end up having to pay more.
Is there any way I can hedge that risk?