repurchase agreement

noun

1. a contract between a dealer, as a bank, and an investor, whereby the investor purchases securities with the promise that they will be bought back by the dealer on a designated date, for which the investor receives a fixed return.

2. a contract between a buyer and a seller whereby the seller agrees to repurchase the item sold after a specified length of time or amount of use. RP

repurchase agreement

noun

1. Sometimes shortened to: repo. an agreement in which a security or asset is sold and later repurchased at an agreed price to raise ready money

Word History and Origins

Origin of repurchase agreement¹

First recorded in 1920–25

Example Sentences

The review also found that the bank hadn’t arranged for enough access to repo funding and hadn’t signed up for the Fed’s Standing Repurchase Agreement Facility.

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But the market is also concerned about Dalian Wanda's other commitments like a share repurchase agreement of about 40 billion yuan if unit Zhuhai Wanda fails to complete an initial public offering in Hong Kong later this year.

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The questions include whether certain issues should be excluded from buyback operations, such as securities that are the cheapest-to-deliver in futures contracts, those that trade with large premiums in the repurchase agreement market or based on how recently they were issued.

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A repurchase agreement facility launched by 2024 will make it easier for investors to take positions.

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Until then, investors are also likely to continue to make use of the Federal Reserve’s reverse repurchase agreement facility, which is seeing daily demand of around $2.25 trillion.

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