re·po /'rē-ˌpō/ n pl repos

Merriam-Webster’s Dictionary of Law. . 1996.

Repo is short for a repurchase agreement or a sale and repurchase agreement where one party sells a security to another party for cash and agrees to repurchase it on a specified date for a specified price. The interest rate implied from this "lending" transaction is the repo rate. They are commonly used in the financial markets for secured lending.
Typically undertaken in the context of securities or mortgage loans, an arrangement under which a security, a loan or other asset is sold by Party A to Party B with a corresponding agreement by Party B to sell the asset back to Party A for a specified (higher) price. The assets are repurchased on a certain date or within a certain time period, usually within a year of the original sale so as to qualify for the safe harbor from the automatic stay in section 559 of the Bankruptcy Code. A repo is essentially a loan disguised as a sale, with the interest rate equal to the difference between the repurchase price and the original sale price. The seller is essentially the borrower and the buyer is essentially the lender in the transaction, holding the securities it has "bought" as collateral for the "loan."

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

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  • repo — by 1972 (in repo man), Amer.Eng., short for REPOSSESS (Cf. repossess) or repossession …   Etymology dictionary

  • repo — (Del mapuche repu). m. Arbusto americano de la familia de las Verbenáceas, especie de arrayán de gran tamaño, pues llega a alcanzar seis metros de altura, con las hojas opuestas o alternas y aovadas, que llevan una espina larga en su axila,… …   Diccionario de la lengua española

  • repo — ☆ repo [rē′pō ] n. pl. repos 1. Slang something repossessed 2. an agreement by a seller, as of securities, to repurchase in the near future at an agreed upon price …   English World dictionary

  • repo — An agreement between a seller and a buyer, usually in U.S. government securities, in which the seller agrees to buy back the security at a later date. Also: repurchase agreements Chicago Board of Trade glossary An informal name for a repurchase… …   Financial and business terms

  • Repo — A agreement in which one party sells a security to another party and agrees to repurchase it on a specified date for a specified price. See: repurchase agreement. The New York Times Financial Glossary * * * ▪ I. repo re‧po 1 [ˈriːpəʊ ǁ poʊ] noun… …   Financial and business terms

  • Repo — Un repo, dont le nom juridique français est pension livrée, est le surnom mondialement utilisé qui a été donné aux États Unis aux repurchase agreements, ou accords de rachat, importants instruments financiers du marché monétaire. Sommaire 1… …   Wikipédia en Français

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