请老师梳理一下 ABC XYZ REPO CO

问题如下：

QUESTIONS (1) AND (2) REFER TO THE FOLLOWING INFORMATION

XYZ, a small investment management firm, specializes in structuring small business loans and selling the government guaranteed portion to other institutional investors while retaining the riskier portions for high net worth investors. XYZ funds its operations by engaging in overnight repurchase agreements (repos) with three firms, but primarily with ABC, a firm that specializes in pooling funds from community banks and local government agencies and investing them in short-term, high-quality, government-secured investments.

Last week, XYZ was informed by ABC that its line had been frozen. XYZ learned that ABC had been defrauded by Repo Co., another repo borrower, who had provided false documentation of non-existent collateral of government- guaranteed loans. ABC feared a run by its investors as news of the fraud spread.

The diagram below illustrates the parties involved:

(1) The use of a central clearinghouse to handle the transactions executed between XYZ's main funding source, ABC and ABC's client, Repo Co., would likely have resulted in a reduction in:

选项：

A.

ABC's funding liquidity risk

B.

Repo Co.'s default risk

C.

XYZ's lending risk

D.

ABC's operational risk

解释：

If it uses a clearinghouse and the clearinghouse makes a mistake (operational risk) like that made by ABC, ABC will have recourse to the clearinghouse and it would have, therefore, reduced its operational risk exposure.

A. Incorrect. ABC is not funding from Repo Co.

B. Incorrect. The use of a clearinghouse does not change Repo Co.’s default risk – just ABC’s exposure to Repo Co. defaults.

C. Incorrect. The use of a clearinghouse in this situation does not reduce XYZ’s lending risk