Series 65: 2.13.4 Repurchase Agreements

Taken from our Series 65 Online Guide

2.13.4 Repurchase Agreements

A repurchase agreement, or repo, is a short-term contract to sell an asset, such as a Treasury bond, and simultaneously buy it back in the future at an agreed-upon price (typically a higher price). At its simplest, a repo is a form of short-term borrowing. A reverse repurchase a

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