Reverse repurchase agreement

Definition
Reverse repurchase agreement
See repurchase agreement.
Ask a Question ...

Reverse Repurchase Agreements See Repurchase Agreements.
Reverse Swap A transaction that occurs on the secondary swap market. It is used to offset currency rate or interest rate exposure on an existing swap.

Reverse Repurchase Agreement: A repurchase agreement initiated by the lender of funds. In the case of the Fed, it is the opposite - when the Fed does reverse RPS, it is draining reserves from the banking system.

Reverse Repurchase Agreement (Reverse Repo): A reverse repurchase agreement is an agreement under which an investor sells securities to a broker/dealer/bank and agrees to buy the securities back at a pre-determined price on a pre-determined ...

Gestation repo
A reverse repurchase agreement between mortgage firms and securities dealers. Under the agreement, the firm sells federal agency-guaranteed MBS and simultaneously agrees to repurchase them at a future date at a fixed price.

A reverse repurchase agreement is simply the flip side of the transaction, from the buyer's viewpoint not the seller's.

Dollar roll
Similar to the reverse repurchase agreement-a simultaneous agreement to sell a security held in a portfolio with purchase of a similar security at a future date at an agreed-upon price.

They do this by lending money to the commercial banks through reverse repurchase agreements. In this operation the ECB lends money to the commercial banks against some form of collateral which is repurchased the following day at an agreed price.

For the party selling the security (and agreeing to repurchase it in the future) it is a repo; for the party on the other end of the transaction, (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement.

reverse repurchase agreement A purchase of securities with an agreement to resell them at a higher price... reverse split A stock split which reduces the number of outstanding shares and increases the...

See also: Repurchase, Repurchase agreement, Securities, Return, Interest Rate