reverse repo

English

Noun

reverse repo (plural reverse repos)

1. (finance) A repo (repurchase agreement) viewed from the perspective of the borrower; an agreement to buy a certain security and resell it at some time in the future.

Usage notes

• The terms repo and reverse repo describe the same transaction viewed from the perspective of the lender and borrower respectively. Sometimes a convention is used wherein the transaction is always described from the dealer's perspective; if the dealer is lending then it is a repo, and if it is borrowing then it is a reverse repo.