Repurchase agreements


Repurchase agreements
Repurchase agreements (also known as repos) involve the sale of securities together with an agreement for the seller to buy back the securities at a later date from the purchaser. The repurchase price is obviously higher than the original sale price. On the repurchase date, the purchaser must have the securities available. It is, therefore, a kind of loan, the cost of which is given by the repurchase spread.
Gruppo Banca IFIS
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