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repo

repo

2 7.6
A short-term loan using stocks or bonds sold and later bought back at an agreed price
  • noun
  • /ˈrɛpoʊ/
  • Specialized
translation icon : operación de recompra
  • 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.

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Examples

  • So these are repo agreements or repurchase agreements.

  • So arrangements, repo arrangements that are for more than a night are known as term repo.

  • 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.

  • Many investors rely on repo agreements to obtain short-term funding by temporarily selling their securities.

  • The bank offered me a lower interest rate on a repo, ensuring the transaction was secure with collateral.

Synonyms

repurchase
vsrepo
3 4.9

Buying back something that was sold before

is a short term loan using sold securities as temporary collateral for repayment

Surface Forms

repo singular
repos plural

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.