Home >  Term: repurchase agreement
repurchase agreement

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 for which, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser's (customer's) perspective, the deal is reported as a reverse repo.

0 0

Creator

  • Jessehe
  •  (V.I.P) 32013 points
  • 40.13% positive feedback
© 2024 CSOFT International, Ltd.