repo
- noun
- /ˈrɛpoʊ/
- Specialized
- A repurchase agreement, or repo for short, is in effect a short-term loan secured with Treasury securities.
- repo agreement
- repo agreement
- repo market
You have this Federal Reserve facility called the Fed Repo facility.
- You have this Federal Reserve facility called the Fed Repo facility.
- And what reverse repo means, It means the money is running out of the banking system.
Examples
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So these are repo agreements or repurchase agreements.
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So arrangements, repo arrangements that are for more than a night are known as term repo.
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A lot of that leverage came through repo finance.
Blog text (4) -
The customary vehicle for borrowing was the repurchase agreement or "repo."
Academic text (2010) -
The Fed typically (or at least prior to 2008) manipulates short-term rates through overnight loans to dealers via the repo market.
Academic text (2018) -
In a repo transaction, the seller sells securities to the buyer with an agreement to repurchase them later at a specified price.
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Many investors rely on repo agreements to obtain short-term funding by temporarily selling their securities.
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The bank offered me a lower interest rate on a repo, ensuring the transaction was secure with collateral.
Synonyms
Buying back something that was sold before
Surface Forms
Morphology
repo = repurchase agreement (semi-transparent) = repurchase + agreement
Clipped from a technical financial phrase; the morphological origin (repurchase + agreement) is clear but the precise financial meaning requires domain knowledge.
Etymology
Repo is short for repurchase, with re- meaning 'again' and purchase meaning 'buy'. A repo is a deal where someone sells securities and agrees to 'buy them back' later, so it works like a short loan.