overnight repo


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Related to overnight repo: Reverse Repurchase Agreement, Repo transaction

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 ?
5 trillion in overnight repos, while the aggregate insured bank deposits in the United States were only twice as much.
Fannie Mar and Freddie Mac were not legally backed by the government, nor were money market funds, nor overnight repo.
The UAE central bank trimmed the overnight repo rate by 15 basis points to 4.
25 announced another 25 basis points increase in the overnight repo rate to 7.
Second, the rate pressure should be greater in overnight repo rates than overnight LIBOR because of the timing of the two markets: The brokered repo market is active during the afternoon in the United States, while the London LIBOR-based Eurocurrency market is closed.
The article then examines the difference between general and specific collateral, defines the repo spread and dividend, presents a framework for determining the equilibrium repo spread, and describes the average pattern of overnight repo spreads over the auction cycle.
The overnight repo rate dropped 24 basis points to 4.
5% of deposits that each bank can borrow from the overnight repo window.
This increased pressure on market liquidity and kept the overnight repo rate closer to the corridor ceiling despite substantial liquidity injections by the State Bank of Pakistan (SBP).
The result is that the economy gets too much overnight repo, and the rest of us pay a price for it, because favoring such short-term debt means that more financial firms like Bear, Lehman, and MF Global fail.
Chart 4 graphs overnight repo financing by primary dealers as a function of marketable Treasury debt on a monthly basis from October 1980 (when the Federal Reserve began publishing data on primary dealer repos) to September 1990.
Bangladesh Bank has accepted all the four bids it received for the overnight repo actions, the central bank said.