Archive for the ‘Acecash’ Category

What’s the repo market, and just why does it matter?

Freitag, Mai 15th, 2020

What’s the repo market, and just why does it matter?

A repurchase contract (repo) is a short-term guaranteed loan: one celebration offers securities to some other and agrees to repurchase those securities later on at an increased price. The securities act as collateral. The essential difference between the securities’ initial cost and their repurchase price may be the interest compensated from the loan, referred to as repo price.

A reverse repurchase agreement (reverse repo) may be the mirror of the repo deal. In a reverse repo, one celebration acquisitions securities and agrees to market them right right back for a confident return at a later time, frequently when the day that is next. (mehr …)