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Finance Dictionary and Glossary of Investment Terms
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.
A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price. also called repo or buyback.