THE OWNERSHIP FLIP
Party AOWNS THE BOND
DAY 0 · FLIPSBond → · ← Cash
Party BLEGAL OWNER · DURING REPO
DAY N · FLIPS BACK← Bond · Cash + Rate →
Party AOWNS THE BOND AGAIN
2 FLIPS, 1 AGREEMENTTITLE MOVES FIRST
A repurchase agreement looks like a loan against collateral. Legally, it's two separate sales with a promise between them — and that difference decides who owns the collateral the moment someone defaults.