The rent amount that can be captured by reinvesting the repo loan funds at the higher general collateral repo rate.

The repo dividend can be expressed as the repo spread times the value of the repo collateral (security):

δ = p × s = p (r- R)

Where: s is the repo spread; p is the value of repo security; r is the general repo rate; R is the special repo rate.

The repo spread is difference between the general repo rate and the special repo rate. The repo dividend goes to the holder of collateral, i.e., a dealer or the investor holding the underlying instrument that is on special.