What Is the Repo Market?

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By Cleo Chang

For a $3+ trillion market, “repos” generally don’t get much attention from investors—even from those who are familiar with the term.

Repos, short for repurchase agreements, are a form of short-term borrowing. These deals allow one party to lend cash in exchange for debt instruments, such as Treasury bills and other government securities, often overnight. The borrower can then repurchase the securities, and the small difference in price is known as the repo rate.

Most of the time, this process happens behind the scenes. But what happens when the repo market doesn’t work as intended? Watch my latest video to hear more on the important role repurchase agreements have recently played in investment markets.

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Cleo Chang
Cleo Chang
Head of Investment Solutions

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