repurchase agreement

(redirected from Repos and Reverses)
Also found in: Financial.
Related to Repos and Reverses: Overnight repo, Term repo, Repo transaction, Repo agreement

repurchase agreement

n.
A contract giving the seller of an asset the right or obligation to buy back the asset at a specified price on a given date.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

repurchase agreement

n
(Banking & Finance) an agreement in which a security or asset is sold and later repurchased at an agreed price to raise ready money. Sometimes shortened to: repo
Collins English Dictionary – Complete and Unabridged, 12th Edition 2014 © HarperCollins Publishers 1991, 1994, 1998, 2000, 2003, 2006, 2007, 2009, 2011, 2014

repur′chase agree`ment


n.
a deal to purchase securities between an investor and a bank, stipulating that the investor will sell back the bonds on a specified date, keeping the interest.
[1920–25]
Random House Kernerman Webster's College Dictionary, © 2010 K Dictionaries Ltd. Copyright 2005, 1997, 1991 by Random House, Inc. All rights reserved.
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References in periodicals archive ?
The discussion begins with a description of repos and reverses, the difference between on-the-run and older securities, and the ways dealers use repos to finance and hedge.
Transactions involving repurchase agreements (known as repos and reverses) are used to manage the quantity of reserves in the banking system on a short-term basis.
The next section describes what repos and reverses are, describes the difference between on-the-run and older securities, and discusses the ways dealers use repos to finance and hedge.