Repurchase Agreement (Repo)

A short-term loan secured by selling and repurchasing securities.

In a repo, one party sells securities and agrees to buy them back shortly after at a slightly higher price, effectively a collateralized short-term loan. Repos are vital to money markets and bank funding. Stress in the repo market can signal broader financial strain.

The bank raised overnight cash through a Repurchase Agreement (Repo), selling Treasuries and agreeing to buy them back the next day.