repurchase agreement

noun

re·​pur·​chase agreement (ˌ)rē-ˈpər-chəs- How to pronounce repurchase agreement (audio)
: 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 But some said the incident exposed cracks in the multitrillion-dollar market for repurchase agreements, known as repo, where banks and hedge funds borrow cash mainly using Treasurys as collateral. Eric Wallerstein, WSJ, 19 Nov. 2023 Money markets aren’t much different, and the Fed now provides them with the ultra-safe option of parking cash at its reverse repurchase agreement facility. Norbert Michel, Forbes, 23 Mar. 2023 For the first time since November, banks tapped the Fed’s foreign repurchase agreement facility for $60 billion. Craig Torres, Fortune, 23 Mar. 2023 JPMorgan is using blockchain in repurchase agreement markets. Greg Ritchie, Bloomberg.com, 1 Feb. 2023 Last Friday, bank-to-bank dealing in the overnight repurchase agreement market hit a record of more than $900 billion. William Pesek, Forbes, 3 Aug. 2022 The overnight reverse repurchase agreement, or reverse repo, facility has allowed the Fed to sop up excess liquidity from the economy by giving banks or big money managers a way to park cash and earn a return. Telis Demos, WSJ, 2 June 2022 But the Fed has been raising other interest rates as well, including one with a dismal name: the reverse repurchase agreement, a.k.a. the reverse repo rate. New York Times, 12 June 2022 The Fed made a separate technical move to expand the limit per counterparty on what is known as an overnight reverse repurchase agreement. Telis Demos, WSJ, 20 Mar. 2021

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'repurchase agreement.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1891, in the meaning defined above

Time Traveler
The first known use of repurchase agreement was in 1891

Dictionary Entries Near repurchase agreement

Cite this Entry

“Repurchase agreement.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/repurchase%20agreement. Accessed 18 Apr. 2024.

Legal Definition

repurchase agreement

noun
: 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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