Term repo

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Term repo

A repurchase agreement with a term of more than one day.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Term Repo

A practice in which a bank or other financial institution buys securities with the proviso that the seller repurchases the same securities for an agreed-upon price on a certain day more than one day after the establishment of the agreement. Investors and financial institutions do this in order to raise short-term capital. A term repo differs from other types of repo because the term is more than one day.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved