reverse repo

From Wiktionary, the free dictionary
Jump to navigation Jump to search

English

[edit]

Noun

[edit]

reverse repo (plural reverse repos)

  1. (finance) A repo (repurchase agreement) viewed from the perspective of the borrower; an agreement to buy a certain security and resell it at some time in the future.

Usage notes

[edit]
  • The terms repo and reverse repo describe the same transaction viewed from the perspective of the lender and borrower respectively. Sometimes a convention is used wherein the transaction is always described from the dealer's perspective; if the dealer is lending then it is a repo, and if it is borrowing then it is a reverse repo.