Please contact your account manager for inquiries.

A repurchase agreement is a contract under which the bondholder (client) sells the bond to the buyer (CGS International Holdings Limited) for cash proceeds, with a commitment that the bondholder (client) will repurchase the bond (plus interests) at a future date.

Cash proceeds through bond repurchase transactions can be used for:

1. Provide leverage in bond investment to enhance investment returns;

2. Invest in other types of bonds for risk diversification;

3. Invest in other products to enrich the asset classes of the portfolio;

4. Withdraw cash to meet client’s financial needs.

There is a percentage discount deducted from the market value of a bond that is being offered as collateral in a bond repurchase transaction (The Hair-cut ratio). For example, if a client sells a $100 bond to CGSI and CGSI provides a 30% haircuts for the bond, then the purchase price of the bond through a bond repurchase transaction will be $70.

Factors affecting Haircut ratio:

1. Market liquidity risks of the bonds

2. Credit rating of the bonds

3. Counterparty risk (i.e. client's financial situation and repayment capacity)

4. Other factors related to market risk and credit risk

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Nothing contained on the website should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction.

No information included on this website is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investment involves risks, bond repurchase is only suitable for professional investors, investors should read the relevant documents in detail and seek independent financial and tax advice before making any investment decision.