Money Markets

Repurchase Agreement

Definition

What is Repurchase Agreement?

A transaction in which one party sells securities and agrees to buy them back later at a higher price.

Example in practice

A bank obtains overnight cash through a repo secured by government bonds.

Keep learning

A short-term government debt instrument usually issued at a discount and repaid at face value.

Short-term unsecured debt issued by a company.

A time deposit or tradable bank instrument that pays interest over a stated term.

A portfolio of debt instruments with maturities spread across regular intervals.

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