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.

 

Related Words

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 . . . View Full Definition

Purchase Agreement: Used in connection with project financing; an agreement to purchase a specific amount of project output per period.

Preferred Stock Agreement: A contract for preferred stock.

Preferential Trade Agreements: Agreements among a group of countries to extend special trading advantages, usually tariff rates that are lower than most-favored nation rates. The U.S.’s Caribbean Basin Initiative and the . . . View Full Definition