Question

Repurchase agreements

06 Sep 2023
Answer :
Word Count : 369

Repurchase Agreements (Repos) - Short Notes:

  1. Definition: A repurchase agreement, commonly known as a repo, is a financial transaction where one party sells securities to another party with a promise to repurchase them at a later date, typically at a higher price.

  2. Parties Involved: There are two main parties in a repo: the seller, often referred to as the "borrower" or "repo seller," and the buyer, often referred to as the "lender" or "repo buyer."

  3. Collateral: In a repo, the securities being sold act as collateral ____ _________ ____ __________ _____ ___ _________ ___ __________.
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