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by JumpCrisscross
612 days ago
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> from a legal perspective, it is not treated as a secured loan Repos are collateralized and thus secured [1]. Legally, they don’t need to be because if the borrower defaults they just don’t buy back the asset; the seller has no further obligation to sell it to them and carries on their merry way. Repos do however, require special exemptions to avoid being traded as purchases and sales by the IRS, so this is unlikely a valid workaround to a continuous step-up basis czar. [1] https://www.icmagroup.org/market-practice-and-regulatory-pol... |
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