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Finance Dictionary and Glossary of Investment Terms
Reverse repo
Definition 1.
In essence, refers to a repurchase agreement. From the customer's perspective, the customer provides a collateralized loan to the seller.
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Definition 2.
A purchase of securities with an agreement to resell them at a higher price at a specific future date. This is essentially just a loan of the security at a specific rate. also called reverse repurchase agreement.
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