repurchase agreement

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Related to Repurchase agreements: repo rate, Reverse Repo, Reverse Repurchase Agreements

Repurchase agreement

An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. Also called a repo, it represents a collateralized short-term loan for which, where the collateral may be a Treasury security, money market instrument, federal agency security, or mortgage-backed security. From the purchaser's (customer's) perspective, the deal is reported as a reverse repo.

Repo

A practice in which a bank or other financial institution buys securities with the proviso that the seller must repurchase the same securities for an agreed-upon price on a certain day. Investors and financial institutions do this in order to raise short-term capital. A repo is also called a repurchase agreement or an overnight repo.

repurchase agreement (RP)

The sale of an asset at the same time an agreement is made to repurchase the asset at a specified price on a given date. Essentially, this process involves taking out a loan and using the asset as collateral. Also called repo. Compare reverse repurchase agreement. See also overnight repo.

repurchase agreement

An agreement to buy something back from the purchaser.This is encountered most often in two situations:(1) The thing purchased turns out to be less valuable than originally thought, such as when someone buys a promissory note, or a partial interest in a promissory note,and the obligor then defaults.(2) Especially with condominium units in facilities specializing in elder care, the seller of the units will agree to buy them back at a preestablished price if the owner dies or becomes so disabled as to require nursing home or similar care.

References in periodicals archive ?
The company intends to use a portion of those proceeds to pay reduced but currently unmet margin calls on reverse repurchase agreements and to auction swap providers of $530 million plus deficiency claims of $28.
48 billion have been pledged under the repurchase agreements.
Reverse repurchase agreements represent the primary short-term funding source for the company.
Subsequent to June 30, 2007, the Company has made intercompany loans to Belvedere Trust to both reduce the amount of repurchase agreements outstanding and to satisfy requests for additional collateral from Belvedere Trust's repurchase agreement lenders related to the financing of Belvedere Trust's portfolio holdings.
GAAP net income attributable to common stockholders adjusted for (gain) loss on sale of investments, net; realized (gain) loss on derivative instruments, net (excluding contractual net interest on interest rate swaps); unrealized (gain) loss on derivative instruments, net; (gain) loss on foreign currency transactions, net; reclassification of amortization of net deferred losses on de-designated interest rate swaps to repurchase agreements interest expense; and an adjustment attributable to non-controlling interest.
Pennant has stated that it 'is diligently working to affirm the status of the USDA guarantee of each loan, subject to the repurchase agreement .
6 billion) of seven-day repurchase agreements, the most in four weeks, after demand for local-currency debt declined this week.
Repurchase agreements, or repos, are financial instruments in which an investor purchases securities from a bank or dealer and, at the same time, the selling bank or dealer contractually agrees to repurchase the securities at the same price (plus interest) at some mutually agreed-upon future date.
Short-term interest rates fell in the Tokyo market Friday following an announcement by the Bank of Japan (BOJ) that it will consider extending the maturity of its repurchase agreements on government securities.
9 billion decline mainly resulted from a drop in the amount of repurchase agreements outstanding at the end of August.
Government securities held under repurchase agreements by the U.
If a national organization such as the RTC can't find a viable national market for the sale of deposits and core repurchase agreements, why does the FASB assume that a small community bank in a non-metropolitan area has the skills and resources necessary to identify national markets and a national value, especially when the FASB expects valuations to exclude all related intangibles normally associated with depository accounts and core repurchase agreements?