Repo

A repo is a repurchase agreement. A procedure for borrowing money by selling securities to a counterparty and agreeing to buy them back later at a slightly higher price.

Similar financial terms

Repo rate
The interest rate in a repo transaction.

Annual report
Yearly record of a publicly held company's financial condition. It includes a description of the firm's operations, its balance sheet and income statement. SEC rules require that it be distributed to all shareholders. A more detailed version is called a 10-K.

Term repo
A repurchase agreement with a term of more than one day.

Reverse repo
In essence, refers to a repurchase agreement. From the customer's perspective, the customer provides a collateralized loan to the seller.

Reporting currency
The currency in which the parent firm prepares its own financial statements; that is, US dollars for a US company.

Reported factor
The pool factor as reported by the bond buyer for a given amortization period.

Overnight repo
A repurchase agreement with a term of one day.

Open repo
A repo with no definite term. The agreement is made on a day-to-day basis and either the borrower or the lender may choose to terminate. The rate paid is higher than on overnight repo and is subject to adjustment if rates move.

Fair Credit Reporting Act
A consumer protection law that regulates the disclosure of consumer credit reports by consumer/credit reporting agencies and establishes procedures for correcting mistakes on one's credit record.

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Did you know?

Trading paper

CDs purchased by accounts that are likely to resell them. The term is commonly used in the Euromarket.


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