A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use repos extensively to finance their positions. An exception is when the Federal Reserve does a repo; it is lending money, that is, increasing bank reserves.
selling a security to an investor with an agreement to buy the security back at a specific time and price while the investor earns a yield
During a genuine repurchase transaction (repo), the enterprise sells assets to another party and concurrently agrees to reacquire the assets at a specified future date and at an agreed price.
A transaction usually associated with the activities of the Federal Open Market Committee (FOMC). The FOMC buys securities (T-bills) from a non-bank dealer and the non-bank dealer agrees to repurchase them a short time later at a pre-determined price. Also known as a Repo or RP.
An agreement to sell a security for a specified price and to buy it back later at another specified price. A repo is essentially a secured loan.
Repurchase agreements, or repos, are short-term (usually overnight) loans. In a repurchase agreement, a security is sold with the seller agreeing to repurchase the security at a specified date and price. In effect, a repurchase agreement is a collateralized loan, the security being the collateral. The difference between the sale price and the repurchase price is the investor's return. The Federal Reserve makes extensive use of repos as a method of fine-tuning the money supply.
A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, which is, increasing bank reserves.
Agreement whereby an institution purchases securities under a stipulation that the seller will repurchase the securities within a certain time period at a certain price.
Borrowing funds by providing a government security for collateral and promising to 'repurchase' the security at the end of the agreed upon time period. The associated interest rate is the 'repo rate'.
An arrangement by which the seller of an asset agrees, at the time of the sale, to buy the asset back at a specific price and, typically, on a given date.
A form of secured, short-term borrowing in which a security is sold with a simultaneous agreement to buy it back from the purchaser at a future date. The purchase and sales agreements are simultaneous but the transactions are not. The sale is a cash transaction while the return purchase is a forward transaction since it occurs at a future date. The seller/borrower pays interest to the buyer at a rate negotiated between the parties. Rates paid on repos are short-term money market interest rates and are completely unrelated to the coupon rate paid on the instrument being purchased. Informally known as repos. Sometimes called a classic repo to distinguish between these transactions and sell/buybacks. Every transaction where a security is sold under an agreement to be repurchased is a repo from the seller/borrower's point of view and a reverse from the buyer/lender's point of view. Repos and reverses are often used to finance investment purchases, especially by traders.
An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser (customer) perspective, the deal is reported as a reverse Repo.
a contractual agreement whereby the seller of securities agrees to repurchase the same security at a specified price on a future date agreed upon by the parties
a financing vehicle pursuant to which a buyer buys bonds from a seller for a purchase price, with the agreement to resell the bonds to the seller at a future date in exchange for the purchase price, together with interest ( see , Aff
an acquisition of funds through the sale of securities, with a simultaneous agreement (commitment) by the seller to repurchase the securities at a later date
an agreement between a buyer and seller (usually) of U
an agreement between a seller and a buyer in which the seller agrees to repurchase the securities at an agreed upon rate
an agreement between two parties to sell and subsequently repurchase a security at a specified price on a specified date
an agreement in which the seller of a security agrees to repurchase the security sold at a mutually agreed upon time and price
an agreement to buy a security at one price and a simultaneous agreement to sell it back at an agreed-upon price
an agreement under which a fund acquires a fixed income security (generally a security issued by the U
an arrangement between two entities in which one agrees to buy securities from the other and to sell them back on a specific date at a higher price that includes interest
an arrangement under which the Fund purchases securities and the seller agrees to repurchase the securities within a particular time and at a specified price
a short-term sale and subsequent repurchase of securities by a bank or other financial institution
a transaction where a Portfolio buys a security at one price and simultaneously agrees to sell that same security back to the original owner at a higher price
A financing arrangement that involves the sale and subsequent repurchase of a specific security at a specified future date at two different, pre-negotiated prices.
A (U.S. Treasury or federal agency) security that is sold with a simultaneous agreement to repurchase one or more days in the future. Banks are restricted to dealing in Treasury and agency issues. Other firms can repo virtually any asset.
An agreement between seller and buyer that the seller (or buyer) will buy (or sell) back notes, securities, or both property at the expiration of a period of time, or the completion of certain conditions, or both.
An arrangement in which a security is sold and later bought back at an agreed price and time.
A money-market instrument with which the Federal Reserve purchases short-term securities from non-bank dealers who simultaneously agree to repurchase the securities from the Federal Reserve at a stated price and date (from 1 to 15 days) and at a specific rate of interest.
a transaction between two parties in which securities are transferred in exchange for cash, on the basis that the deal will be reversed at a predetermined rate and at an agreed yield.
A purchase of U.S. government securities from a bank or broker made under the stipulation that the seller agrees to buy back or "repurchase" the securities at a fixed price on a future date. "Repos" usually mature in a week or less.
A transaction where securities are sold for cash consideration. The seller is obligated to repurchase the securities at some later point in time at a higher price which reflects a premium (or interest) to the buyer. Typically, such transactions do not extend beyond interest or payment dates. These transactions are also known as "Repos".
An agreement of one party to purchase securities at a specified price from a second party and a simultaneous agreement by the first party to resell the securities at a specified price to the second party on demand or at a specified date.
An agreement between a buyer and seller, where the seller of debt securities, usually Treasuries, agrees to buy back the securities at a set time and price.
Agreements by a borrower where they sell securities with a commitment to repurchase them at the same rate with a specified interest rate.
A financial transaction in which a dealer in effect borrows money by selling securities and simultaneously agreeing to buy them back at a higher price at a later time. The dealer invests the money paid for the securities, hoping to get a higher return than he owes on his obligation to repurchase the securities. Repurchase agreements are commonly called "repos," and they function in a way similar to a secured loan with the securities serving as collateral. In a reverse repurchase agreement, the dealer in effect loans money by buying securities and agreeing to sell them back to the customer at a higher price at a later date. In either case, the difference between the bought and sold price of the securities constitutes the yield on the transaction. See dollar reverse repurchase agreement. Also see retail repos.... read full article
An agreement to sell and later repurchase securities at specific prices.
A contract under which an investor sells a United States security to a bank or Corporation, and agrees to repurchase the security later at a specified time and price. Purchaser earns interest competitive with money market rates.
A method of financing dealer positions whereby the dealer sells U.S. government securities to an investor for cash and agrees to repurchase the securities at a future date for a fixed price. Terms of the agreement are structured to compensate the buyer of securities for what effectively is a short-term loan.
Temporary transfer of a security to another person, based on the understanding that ownership will revert at a future time and price. This "renting" of a debt security fixes the yield while held by the purchaser and insulates the return from market fluctuations during the temporary ownership.
The vehicle whereby most Reserve Bank of Australia (RBA) domestic market operations are conducted. Repurchase agreements (usually called 'repos') involve the sale or purchase of securities with an undertaking to reverse the transaction at an agreed date in the future and at an agreed price. Repos provide flexibility in that they allow the RBA to inject liquidity on one day and withdraw it on another with a single transaction.
1. An agreement between a vendor and a lessor that the vendor will repurchase the equipment and the lease transaction in the event of a default by the lessee. 2. An agreement between a lessor and a funding source that a lease acquired by the funding source, on a non-recourse basis, will nevertheless be repurchased by the lessor if there should be a breach of the lessor's representations and warranties made to the funding source as part of the non-recourse transaction.
An agreement used to finance certain government and money market inventory positions. The brokerage firm sells securities to the financing organization with the agreement that the firm will repurchase them in the short-term future.
A method of borrowing funds in the short term. A borrower sells to an investor some of the borrowers inventory of securities and agrees to buy the securities back in a few days at a higher price. The higher price is the interest paid to the original owner while the securities act as collateral.
Meaning sale and repurchase agreement. An agreement to sell a bond (often a government bond) at one price with a simultaneous agreement to repurchase the bond at a later date at a price agreed today. Effectively, a repo trade enables the holder of a bond to borrow money while using the bond as financial collateral with the lender.
a contract to sell and subsequently repurchase securities at a specified date and price. Also known as an RP or buyback agreement.
contract to purchase and subsequently sell securities at a specified date and price.
(1) A Federal Open Market Committee arrangement with a dealer in which it contracts to purchase a government or agency security at a fixed price, with provision for its resale at the same price at a rate of interest determined competitively. (2) A method of financing inventory positions by sale to a non-bank institution with the agreement to buy the position back.
(‘Repo’) An agreement which permits the Reserve Bank to control liquidity in the money market, by allowing authorised dealers in the short-term money market to assign securities to the Reserve Bank in exchange for cash, or vice versa. The transaction is carried on the basis that it will be later reversed on agreed terms.
An agreement under which authorised dealers in the short-term money market transfer securities to the Reserve Bank in exchange for cash, on the basis that the transaction will be reversed at a later date on the agreed terms. The transaction can also occur in the opposite fashion (reverse repo). The main purpose of these arrangements is to allow the Reserve Bank to manage liquidity in the money market.
An agreement to sell and repurchase an asset.
The selling of a security or other asset with an agreement in place to repurchase that security or asset at a later, specified time.
Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. A more accurate and descriptive term is Sale and Repurchase Agreement, since what occurs is that the cash receiver (aka repo seller) sells securities now, in return for cash, to the cash provider (aka repo buyer), and agrees to repurchase those securities from the cash provider for a greater sum of cash at some later date, that greater sum being all of the cash lent and some extra cash (constituting the implicit interest rate, known as the repo rate).