It’s no surprise to find that Société Générale Corporate & Investment Banking (SG CIB) was involved in a large, long-dated equity repo transaction with a US bank last year. What is more surprising is that the French bank was the counterparty lending US dollars.
It was able to do so because its own US dollar funding troubles in the second half of 2011 resulted in a large deleveraging project and detailed analysis of the bank’s US dollar funding sources (Risk October 2012, pages 39-41). That work a
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