What about Interest Rate Risk?

Forward Repurchase Agreements provide price protection over a specified term, unlike margin accounts. These repurchase agreements require a broker dealer, or counterparty, to purchase a portfolio of treasuries at a set price, at future date from our clients. As part of our service, we do not work with margin accounts and thereby remove the threat of interest rate hikes by showing our clients how they can benefit from asset liability matching instead, via forward Repurchase Agreements. The result is the yield on loans matches the interest due from the U.S. Government securities.