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What’s the repo market, and just why does it matter?

Posted by on May 16, 2020 in Best Payday Loans | 0 comments

What’s the repo market, and just why does it matter? A repurchase contract (repo) is just a short-term guaranteed loan: one celebration offers securities to some other and agrees to repurchase those securities later on at a greater cost. The securities act as security. The difference between the securities’ initial cost and their repurchase cost may be the interest compensated from the loan, referred to as repo price. A reverse repurchase agreement (reverse repo) could be the mirror of a repo deal. In a reverse repo, one celebration purchases securities and agrees to market them...

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