repurchase agreement


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Related to repurchase agreement: repo rate, Reverse Repurchase Agreement

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 ?
* Compare the long-term investment portfolio to the overnight securities under repurchase agreement for any possible excess exposure.
Prior to 1982, most repo market participants believed that a creditor could sell the securities underlying a repurchase agreement promptly in the event of the borrower's default.
As a result, and at the request of TBMA members active in the repurchase transaction markets, the Trading Practices Committee of the TBMA Funding Division published an optional substitution/termination provision to the TBMA Master Repurchase Agreement. The provision, if agreed to by the parties to the repurchase transaction, would allow the repo seller (broker/dealer) to retain effective control over the purchased securities.
Under the terms of the stock repurchase agreement, Arch has agreed to repurchase from Monarch 750,000 shares of Arch's common stock at a purchase price of $74.33 per share, representing aggregate consideration of approximately $55.7 million.
Coal producer Arch Coal Inc (NYSE:ARCH) revealed on Monday the launch of USD41.5m stock repurchase agreement with certain investment funds managed by Monarch Alternative Capital LP.
In addition, the Office of Financial Research presented on a potential proposal to establish a permanent collection of bilateral repurchase agreement data.
Pennant has stated that it 'is diligently working to affirm the status of the USDA guarantee of each loan, subject to the repurchase agreement ...' and that it 'will do everything possible to see that [its clients] are made whole.'
A significant portion of these balances is invested in German and Japanese government securities held directly or under repurchase agreement. As of June 30, outright holdings of government securities by U.S.
Arconic (ARNC) announced that it has entered into an accelerated share repurchase agreement with JPMorgan Chase Bank (JPM), National Association, London Branch, to repurchase $700M of Arconic's common stock, pursuant to the share repurchase program previously authorized by the Board of Directors.
Jefferies Funding LLC (JFLLC), a wholly owned subsidiary of Jefferies Group LLC (BBB/F3/Stable), will periodically sell assets to, and simultaneously agree to repurchase the same assets from, the trust pursuant to a master repurchase agreement. Jefferies Group has provided a full and unconditional guarantee of JFLLC's payment obligations to the trust under the repurchase agreement.
M2 EQUITYBITES-June 16, 2017-Immune Pharmaceuticals signs Ceplene asset repurchase agreement with Meda
CN will enter into three share repurchase agreements (Agreements) with third parties to repurchase common shares through daily purchases that will take place commencing upon the completion of the previous share repurchase agreement up to October 29, 2016, subject to a maximum of 7,449,000 common shares.