What are the expected rewards

Reference no: EM132197967

Question: 1. What are the risks faced by dealers in the Treasury market? What are the expected rewards?

2. What are special repo rates and General Collateral or GC repo rates? What is the relationship between these two rates?

3. Explain the meaning of the term winner's curse. Why should the U.S. Treasury be concerned about the possibility of winner's curse being present in Treasury auctions?

4. Who are likely to be the buyers in the WI market and who are likely to be the sellers? What consequences does the WI market have for the auction prices and the secondarymarket prices?

Reference no: EM132197967

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