While traditional repo is generally a mitigated credit risk instrument, residual credit risks do exist. Although this is essentially a secured transaction, the seller can no longer redeem the securities sold on the maturity date. In other words, the pension seller is no longer in arrears with his obligation. Therefore, the buyer can keep the guarantee and liquidate the guarantee to recover the money loaned. However, the security may have lost value since the beginning of the transaction, as it is subject to market movements. To mitigate this risk, repo is often over-secured and subject to a daily margin at market value (i.e., if the collateral loses value, a margin call may be triggered to ask the borrower to release additional securities). Conversely, if the value of the security increases, there is a credit risk for the borrower, because the creditor is not allowed to resell it. . . .