overnight repo

(redirected from Overnight Repurchase Agreement)

Overnight repo

A repurchase agreement with a term of one day.

Overnight Repo

A practice in which a bank or other financial institution buys securities with the proviso that the seller repurchase the same securities the following day. Financial institutions do this in order to raise short-term capital. See also: Overnight loan.

overnight repo

A repurchase agreement in which securities are sold provided that they will be repurchased on the following day. Financial institutions use overnight repos as a means of raising short-term money for financing inventories.
References in periodicals archive ?
1m investment in the daily overnight repurchase agreement with First Farmers Financial Llc during the three months and the year ended December 31, 2014, of USD1.
1 million investment in the daily overnight repurchase agreement with First Farmers Financial LLC ("First Farmers.
Only rarely would a human become involved in an overnight repurchase agreement.
If interest were allowed on required reserve balances, the Federal Reserve would likely pay a rate close to the rate available on an overnight repurchase agreement.
1 million investment in a daily overnight repurchase agreement with First Farmers Financial LLC ("First Farmers.
To protect against any possible large redemptions, the fund will maintain a large overnight repurchase agreement position.
agency securities, 38% to commercial paper, and 31% in overnight repurchase agreement.
No overnight repurchase agreement (repo) were held Wednesday at the bank," CBJ added.
According to the CBJ No overnight repurchase agreements were held with the CBJ last Thursday.
Another tool would have a similar impact but apply more broadly, using overnight repurchase agreements that would let money market funds and other institutions as well as banks essentially make short-term deposits at the Fed.
Shaw Group, said that the Fed should use the interest rate at which it will offer overnight repurchase agreements as its "policy instrument" and that that rate should be the same as that paid banks on reserves.
The CBJ kept the interest rates unchanged on other monetary tools, the rediscount rate and overnight repurchase agreements.