Repurchase agreements
Repurchase Agreements (Repos) - Short Notes:
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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.
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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."
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Collateral: In a repo, the securities being sold act as collateral ____ _________ ____ __________ _____ ___ _________ ___ __________.
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