reverse repurchase agreement


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Related to reverse repurchase agreement: Reverse Repo, Repo transaction

Reverse Repurchase Agreement

A practice in which a bank or other financial institution buys securities or another asset with the proviso that it will resell these same securities or asset to the same seller for an agreed-upon price on a certain day (often the next day). Investors and financial institutions do this in order to raise short-term capital. Indeed, it is the equivalent of a short-term loan with the securities or asset serving as collateral. A reverse repurchase agreement is the same as a repurchase agreement, but from the perspective of the buyer rather than the seller. It is also called a matched sale transaction or simply a reverse.

reverse repurchase agreement

The purchase of an asset with a simultaneous agreement to resell the asset on a given date at a specified price. The result is simply a loan at a prescribed rate for a predetermined period while holding the asset as collateral. Also called reverse. Compare repurchase agreement.
References in periodicals archive ?
The Board of Trustees approved this policy change based on a recommendation from AGIFM and the Fund's sub-adviser, Pacific Investment Management Company LLC ("PIMCO"), that the new policy would give the Fund greater flexibility to pursue income for the Fund's common shareholders, and potentially at favorable financing rates that may be offered by reverse repurchase agreements in comparison to other forms of leverage under various market conditions.
A third ED deals with the appropriate accounting and financial reporting for reverse repurchase agreements.
The interpretation clarifies financial reporting for governments that pool money for investments when the pools have reverse repurchase agreements and says governments should report all assets and liabilities arising from agreements in the balance sheets of the funds that have the risk of loss on those assets.
3, Deposits with Financial Institutions, Investments (Including Repurchase Agreements), and Reverse Repurchase Agreements, provided reporting standards for reverse repurchase agreements," said Scott.
18bn when it arranged three-day, tri-party reverse repurchase agreements, as part of a series of open market operations, starting in 2009.
The county's highly leveraged portfolio of investments, made up of derivatives and reverse repurchase agreements instead of less glamorous but perhaps more prudent investments, left the county bankrupt and unable to meet its budget on December 6, 1994.
The cash was injected through reverse repurchase agreements (repos) to ease a short term liquidity crunch.
Adjusted leverage (assets minus reverse repurchase agreements, divided by equity) was a conservative 14.
The Financial Accounting Standards Board published an exposure draft of its proposed interpretation, Offsetting of Amounts Related to Certain Repurchase and Reverse Repurchase Agreements.
Government, zero coupon bonds, reverse repurchase agreements, structured notes, or instruments commonly known as derivatives.
Outstanding loans, excluding those in reverse repurchase agreements, have reached PHP2.
The portfolio currently has no assets subject to reverse repurchase agreements or otherwise leveraged.