World Bank Group2016-04-182016-04-182015-05https://hdl.handle.net/10986/24085Thesis aim of this draft background note is to provide public debt managers with an overview of the matters that need to be considered by debt management offices planning to provide a securities lending facility to their primary dealers.en-USCC BY 3.0 IGOUSE OF REPOSAUCTIONHOLDINGBORROWERACCOUNTINGFIXED INCOMEPUBLIC DEBT MANAGERSREPO AUCTIONVALUATIONINTERESTINSTITUTIONAL INVESTORSLENDING LIMITSGOVERNMENT FUNDINGOPTIONDEBT MANAGEMENTBROKERAGE FIRMSPORTFOLIOLOANLENDING INSTRUMENTBORROWERSMUTUAL FUNDSINSTRUMENTSREPO TRANSACTIONSMARKET PARTICIPANTSSECONDARY MARKET IN GOVERNMENT SECURITIESMARKET LIQUIDITYSECURITIES ISSUANCECURRENCYMARKET DEVELOPMENTPLEDGE OF SECURITIESUSE OF COLLATERALRESERVE BANKMARKET MAKERSFINANCESBANK LENDERSPRIMARY DEALERSDEBT OUTSTANDINGEMERGING MARKETDEBTMARKETSMARKET MAKERSETTLEMENTLOAN MATURITYSECONDARY MARKET PRICECOUPON BONDSNATIONAL TREASURYINVENTORYGOVERNMENT SECURITIES MARKETBUY BACKTRANSACTIONSAUCTIONSEMERGING MARKETSREPO MARKETBOND MARKETSTRANSPARENCYLIABILITY SIDEMARKET CONDITIONSTURNOVERFUTURELENDER OF LAST RESORTLIQUIDITY POSITIONOVERNIGHT REPOINCOME SECURITIESISSUANCEBOND PORTFOLIOST-BILLSLOCAL CURRENCYNET DEBTRISK OF DEFAULTFIXED INCOME SECURITIESBOND MATURITYPUBLIC DEBTSECURITIESTREASURYLENDING INSTRUMENTSCREDIT RISKHOLDINGSGOVERNMENT DEBTGOVERNMENT BONDSSHORT MATURITYCOUPONDEBT MARKET DEVELOPMENTLENDINGGLOBAL FINANCEAMOUNT OF DEBTMARKET PARTICIPANTMARKET PRACTICESMATURITIESLIABILITY MANAGEMENTLIABILITIESBOND MARKET DEVELOPMENTCENTRAL BANK BILLSCAPITAL MARKETSDEPOSITBROKERAGELIABILITYREPO AGREEMENTCASH INFLOWMARKET MAKINGSTOCKOUTSTANDING LOANREPOGUARANTEESREPO FACILITYDEBT STOCKINTEREST RATEMATURITY DATEEXCHANGEAUTOMATIC LENDINGLIQUIDITYSECURITIES TRANSACTIONSBONDSBENCHMARK BONDCLEARING HOUSEDISCOUNTGOVERNMENT BONDPLEDGERESERVEINFLATIONMATURE MARKETSPENSIONLENDERCENTRAL BANKMATURITYT-BONDILLIQUIDITYSECURITIES DEALERSMARKET-MAKINGSECURITIES MARKETPRIMARY MARKETPORTFOLIOSSETTLEMENT RISKGUARANTEE FUNDTRADINGINTEREST RATESREPO MARKETSMARKET MECHANISMPRICE TRANSPARENCYRETURNLENDERSGOVERNMENT SECURITYPUBLIC DEBT MANAGEMENTLOANSSETTLEMENT SYSTEMSECONDARY MARKET LIQUIDITYINVENTORIESRESERVESCASH TRANSFERSFINANCEBENCHMARK BONDSCOLLATERAL POOLMARKET PRICEGOVERNMENT SECURITIESGOVERNMENT DEBT MARKETINVESTORSTRANSACTIONSECURITIES AS COLLATERALGOVERNMENT BOND MARKETSBOND PORTFOLIOLENDING AGREEMENTFINANCIAL INSTRUMENTSSAFETY NETBOND MARKETCONTRACTFINANCING REQUIREMENTSBIDSLEGAL OWNERSHIPT-BILLBALANCE SHEETDEFAULTMARKETREPO TRANSACTIONMARKET VALUEIMPLICIT GUARANTEEDEBT MARKETVALUATION CHANGEMARKET SHAREPRIMARY DEALERSECURITYFINANCIAL MARKETREPO RATEINVESTMENTNATIONAL BANKOUTSTANDING DEBTBONDSHARECOLLATERALSECONDARY BOND MARKETFLOATING RATEFIXED RATE BONDSMONEY MARKETREINVESTMENTPROFITOUTSTANDING AMOUNTPENSION FUNDINSTRUMENTREPOSSECONDARY MARKETGUARANTEEWorking PaperWorld Bank10.1596/24085