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Investing Glossary:
Repurchase agreement
Copyright 2012,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
- R -
| Term: |
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| Definition: |
| An agreement with a Commitment by the seller (dealer) to Buy a security back from the purchaser (customer) at a specified price at a designated Future date. Also called a repo, it represents a collateralized short-term Loan for which, where the Collateral may be a Treasury security, money Market instrument, federal Agency security, or mortgage-backed security. From the purchaser`s (customer`s) perspective, the deal is reported as a reverse repo.
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