LSF standardized Africa Triparty Repo basket
LSF standardized Africa Triparty Repo basket Available
at BNY, Clearstream, Euroclear and J.P. Morgan
The LSF Triparty Repo Africa Basket comprises a curated selection of African sovereign and corporate Eurobonds, maintained and updated by the LSF based on a combination of quantitative eligibility thresholds and qualitative assessments.
The basket includes approximately 180 ISINs, representing a total mark-to-market value of USD 190 billion. It is designed to concentrate liquidity within this asset class in the interbank market and to enable investors to execute triparty repo transactions in a high-quality, liquid environment in a seamless operational fashion. The basket can be tailored to investor requirements at each triparty agent.
“By aligning African Eurobonds with global triparty standards, the LSF Master Basket redefines collateral interoperability — helping turn emerging debt into streamlined, scalable liquidity »
Cyril Louchtchay de Fleurian, Director,
Operational Risk Advisory & Development
About standardised General Collateral “GC” baskets
A General Collateral Basket is a predefined collection of securities within a specific market or jurisdiction that serves as acceptable collateral for financial transactions, particularly in repurchase agreements (repos). The basket typically includes assets such as government securities.
Its main benefits include:
- Operational efficiency
- Enhanced liquidity due to standardisation
- Reduced transaction costs through simplified processing
- Better risk management
- Flexibility to substitute securities as long as they meet criteria
Operating in triparty
The principle of Triparty repo is to outsource daily valuation, margin calls, and substitutions of assets contained in a basket of securities to a Triparty agent.
The objective of the Triparty agent is to maintain a permanent balance between the amount of cash lent in a repo transaction and the market value of the collateral deposited as security.
The liquidity provided promotes the reduction of counterparty risk, improves transparency, and contributes to stabilizing volatility.
Technical views
The LSF establishes the first standardized Africa Triparty
Repo basket
Triparty repo: a lever for
boosting liquidity
Performance of the asset class
About The Liquidity and Sustainability Facility
The LSF was designed with the support of the United Nations Economic Commission for Africa and Afreximbank with the dual objective of supporting the liquidity of African Sovereigns Eurobonds and incentivizing SDG-related investments such as SDG and green bonds on the African continent.
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