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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
On Friday, the People's Bank of China conducted CNY50bn (USD7.5bn) of 14-day reverse repurchase agreements, a process in which central banks purchase securities from banks with an agreement to resell them in the future.
Target: Rights related to Harvard Savings Bank's USD 18.1m investment in loan repurchase agreements managed by Pennant Management, Inc.
The Association for Financial Professionals' 2013 Liquidity Survey showed that just 3% of respondents' portfolios was allocated to repurchase agreements, although 38% of the finance executives surveyed said their company's short-term investment policy permitted them to invest in repos.
The Rediscount rate and the Overnight Repurchase Agreements will remain unchanged at 4.25% and 4.0%, respectively, according to a press release issued by the bank.
He thus proposes eliminating the special bankruptcy provisions for repurchase agreements. This would increase market monitoring by the suppliers of deposits on investment and decrease the use of short-term funds to back longer-term investment.
Cairo: Egypt will offer 16 billion Egyptian pounds ($2.6 billion) of seven-day repurchase agreements, the most in four weeks, after demand for local-currency debt declined this week.
Egypt's central bank accepted 2.66 billion Egyptian pounds ($445.54 million) in seven-day repurchase agreements in the money market (CBES) on Tuesday, less than the 3 billion pounds it had asked for.
The People's Bank of China (PBOC), which carries out open-market operations on Tuesdays and Thursdays, offered CNY65bn worth of one-year bills and CNY140bn worth of 28-day repurchase agreements in its Tuesday operation.
To make this possible, it will issue a new standardised and simplified contract for repurchase agreements, Farid said.
Repurchase agreements have long been a safe way to invest short-term or overnight cash.
Libya's Central Bank on Tuesday launched repurchase agreements for the first time as ‎part of reforming the country's banking system, a bank official said ‏.‏ ‏"‏The Central Bank reached accords today with the country's main banks to launch ‎repurchase agreements.
Repurchase agreements, or repos, play an important role in U.S.