Kendara
Member
Cash: $ 3.50
Posts: 14
Joined: 14 Nov 2009
Location: Tokyo
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Hello, I'm not a native speaker of English.
I don't under stand the meaning of an English verb in the following context:
NAMA (National Assets Management Agency) will drastically boost the banks' liquidity as they will be able to repo their newly-acquired government securities with the ECB.
What does "to repo" mean in this context.
Can someone explain it to me?
Thank you.
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Fri Dec 18, 2009 2:13 am |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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Kendara, in this context it means "repurchase agreement" which is when the seller of a security makes an agreement with the buyer to repurchase the security at a given price and usually at a certain time. This arrangement is usually done with interest-rate instruments when the seller just needs additional funds for a short while.
Repo is also short for "repossess" 
~Tim~
Eye Candy : Why Whimsy
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Fri Dec 18, 2009 6:14 am |
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