Who is involved in a reverse repurchase agreement?
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meier
Apprentice
Joined: 18 Oct 2005
Posts: 4
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 Posted: 06/01/08 - 05:39 Post subject: |
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| Hi everybody. I know that there are some people here who are active on the futures market and who can (hopefully!) help me get the answer to the above question. Like the topic title says, I am wondering who is involved in a reverse repurchase agreement. Anyone with some spare time here? |
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bar
Apprentice
Joined: 06 Jun 2006
Posts: 4
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| Posted: 06/30/08 - 22:14 Post subject: |
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| The reverse repurchase agreement itself is when you buy securities, with a contract that you will sell them on later, for a higher price. The initial buyer sells them on, and for the buyer then it becomes a so called repo. There you have three involved parties already. These transactions take place to raise short term capital. |
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