Repurchase (“Repo”) & Reverse Repurchase AgreementsRepurchase and Reverse Repurchase Agreements • November 2nd, 2019
Repurchase Agreements Primary Dealers Sell “Good Collateral” (usually US Treasuries) to the Fed w/an agreement to buy the collateral back later at a slightly higher price (usually a day to a few weeks later). Repos add liquidity to the banking system.
REPURCHASE AND REVERSE REPURCHASE AGREEMENTSRepurchase and Reverse Repurchase Agreements • September 19th, 2008
