Money Markets

Reverse Repurchase Agreement

Definition

What is Reverse Repurchase Agreement?

The cash-lending side of a repurchase agreement, involving purchase and later resale of securities.

Example in practice

A fund places surplus cash overnight through a reverse repo.

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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