A contract in which the vendor of a security agrees to repurchase it from the buyer at an agreed price.
- The main refinancing operations are regular liquidity providing reserve transactions or repurchase agreements which have a weekly frequency and a maturity of two weeks.
- Corporate treasurers often pickup a few extra basis points of interest in return for lending cash for so-called repurchase agreements (repos, for short).
- Wall Street, that finances their massive balance sheets with repurchase agreements and other short-term vehicles, assumes they will always have access to borrowings to maintain their bloated balance sheets.
For editors and proofreaders
Line breaks: re|pur¦chase agree|ment
Definition of repurchase agreement in:
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.