Nomura's Mexican Reverse Repo Trades: A Chronology
Spring 1990: A trader on Nomura's lesser developed country desk engages in Mexican government bond reverse repo trades with a Mexican counterparty for Nomura's proprietary account.
The buy/sell-backs involve the purchase and sale of both Mexican government bonds and the Mexican peso in order to hedge the currency risk.
These transactions are accounted for as separate purchases and sales, rather than reverse repos, which are classified as financing transactions for regulatory and net capital
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