Repurchase Agreement (Repo)

Repurchase Agreement (Repo),

What is The Definition of Repurchase Agreement (Repo)?

  • Repurchase Agreement (Repo) refers to The repurchase agreement is a form of short-term loan for government bond dealers. Through buybacks, brokers usually sell government bonds to investors overnight and buy the next day at a slightly higher price. This small price difference is the price overnight. Generally, annuities are used to raise capital in a short period of time. They are also a common tool in the central bank's open market operations.

    • A repurchase agreement or repurchase agreement is a short-term contract that is sold to buy security at a slightly higher price.
    • The person who sells the repo is actually borrowing and the other has to borrow, because the lender understands the interest, which is the difference in price between the beginning and the payment.
    • Therefore, purchase and reverse purchase agreements are used for short-term loans and loans, often lasting up to 48 hours overnight.
    • The interest rate included in this agreement is known as the redemption rate, the estimated risk-free interest rate.

  • An agreement between the buyer and the seller in which the seller promises to repurchase the securities within the agreed time and price. The Federal Reserve uses U.S. government bond purchase agreements to control money supply.

Literal Meanings of Repurchase Agreement (Repo)


Meanings of Repurchase:
  1. Rescue (something)

  2. The process of buying something in return.

Sentences of Repurchase
  1. Companies can buy back their shares from 1981

  2. The cost of redemption

Synonyms of Repurchase

rescue, reclamation, have something returned, retrieval, return, get back, recovery, reclaim, regain, recover, repossession, repossess, recoupment, retrieve


Meanings of Agreement:
  1. Harmony or consensus of opinion or sense of position or the result of an agreement.

Sentences of Agreement
  1. The government has not yet reached an agreement

Synonyms of Agreement

unity, concord, concurrence, sympathy, unison, accordance, harmony, accord, consensus, like-mindedness, rapport


Meanings of Repo:
  1. Exchanges (cars or other goods) if the buyer does not pay.

  2. Another contract for sale