repurchase agreement

noun
re·​pur·​chase agreement | \ (ˌ)rē-ˈpər-chəs- How to pronounce repurchase agreement (audio) \

Definition of repurchase agreement

: a contract giving the seller of securities (such as treasury bills) the right to repurchase after a stated period and the buyer the right to retain interest earnings

Examples of repurchase agreement in a Sentence

Recent Examples on the Web In a reverse repurchase agreement, the buyer of a security agrees to sell it back at a later date. Paul Kiernan, WSJ, "U.S. Banking Regulator Backs New Liquidity Requirements," 20 Oct. 2020 On Wednesday, the bank also announced an extension of its temporary US dollar liquidity swap lines and the repurchase agreement facility for foreign central banks and international monetary authorities until March next year. Anneken Tappe, CNN, "Fed keeps interest rates near zero, saying the recovery will depend on the pandemic," 29 July 2020 The People’s Bank of China injected a further $71.2 billion of liquidity through reverse repurchase agreements into the financial system Tuesday, adding to the $171 billion injected Monday. Stephanie Yang, WSJ, "Coronavirus Cases Rise Above 24,000 as Hong Kong Reports First Death," 5 Feb. 2020 Glitches in the market for repurchase agreements in recent months have drawn attention to swings in the amount of cash reserves that the Treasury holds at the Federal Reserve. Saleha Mohsin, Bloomberg.com, "Steven Mnuchin Sees 20-Year Bonds Extending Average Treasury Maturity," 13 May 2020 The Federal Reserve has already bailed out huge asset managers and other shadow banks by backstopping money-market funds, repurchase agreements, and other corporate financing tools. Robin Kaiser-schatzlein, The New Republic, "The “Shadow Banks” Are Back, and Still Too Big to Fail," 27 Apr. 2020 The first is the short-term financing provided by two types of vehicles: repurchase agreements, known as repos, and commercial paper. Shawn Tully, Fortune, "Will ‘The Great Cessation’ be worse than the Great Recession? Here’s what we can tell so far," 25 Mar. 2020 The New York Fed pledged to increase its daily offering of overnight repurchase agreements — essentially short-term loans to eligible banks — to at least $150 billion from $100 billion between Monday and Thursday. Jeanna Smialek, New York Times, "Fed Moves to Keep Credit Flowing and Money Markets Calm Amid Coronavirus Turmoil," 9 Mar. 2020 As trading resumed Monday, the People’s Bank of China injected $173 billion into the money markets through reverse repurchase agreements. Eamon Barrett, Fortune, "China will struggle to spend its way out of the coronavirus economic slowdown," 3 Feb. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'repurchase agreement.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of repurchase agreement

1891, in the meaning defined above

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Time Traveler for repurchase agreement

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The first known use of repurchase agreement was in 1891

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Last Updated

28 Oct 2020

Cite this Entry

“Repurchase agreement.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/repurchase%20agreement. Accessed 2 Dec. 2020.

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More Definitions for repurchase agreement

repurchase agreement

noun

Legal Definition of repurchase agreement

: a contract giving the seller of securities (as Treasury bills) the right to repurchase after a stated period and the buyer the right to retain interest earnings

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