Definition, Meaning & Synonyms

repos

noun

/ˈrɛpəʊz/

Definition

Repos are short for repurchase agreements, a form of secured lending where one party sells an asset to another and agrees to repurchase it at a later date for a higher price.

Examples

Many financial institutions rely on repos for meeting their short-term funding needs.
The company utilized repos to ensure it had sufficient liquidity during the quarter.

Meaning

Repos are primarily used in financial markets to manage liquidity and provide short-term loans usually backed by securities or other forms of collateral.