There are three main types of pensions. The same principle applies to Repos. The longer the duration of the repo, the more likely it is that the value of the guarantees will vary before the redemption and that the activity will affect the buyer`s ability to honour the contract. In fact, counterparties` credit risk is the primary risk of rest. As with any loan, the creditor bears the risk that the debtor will not be able to repay the principal. Deposits act as a secured debt, which reduces the overall risk. And since the repo price exceeds the value of the guarantees, these agreements remain mutually beneficial for buyers and sellers. Some forms of repo trading attracted the attention of the financial press due to the technical details of the comparisons after the collapse of Refco in 2005. Sometimes a party participating in a repo transaction does not have a specific obligation at the end of the pension contract. Dubbed “repo 105” and “repo 108,” investment bank Lehman Brothers used Lehman Brothers as a creative accounting strategy to strengthen its profitability ratios for a few days during the reference season, mistakenly classifying rest as real sales. New York Attorney General Andrew Cuomo claimed the practice was fraudulent and took place under the supervision of audit firm Ernst & Young. E&Y has been the subject of accusations that the company allowed the practice of using repos to “secretly remove tens of billions of dollars worth of securities from Lehman`s balance sheet in order to give a false impression of Lehman`s liquidity and thus deceive the invested public.”  While conventional deposits are generally credit risk instruments, there are residual credit risks. .