Who takes the counterparty risk on the seller in a to-party repo?
A) The buyer
B) The to-party agent
C) A third-party guarantor
D) A central clearing counterparty

Name: Who takes the counterparty risk on the seller in a to-party repo? A) The buyer B) The to-party agent C) A third-party guarantor D) A central clearing counterparty
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Question

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In a to-party repo, the buyer takes on the counterparty risk of the seller. This means that if the seller defaults, the buyer is exposed to potential losses.

Who Takes the Counterparty Risk on the Seller in a To-Party