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A sale (and) repurchase agreement, also known as a (currency) repo, RP, or sale and repurchase agreement, is a transaction concluded on a ''deal date tD'' between two parties ''A'' and ''B'': (i) ''A'' will on the ''near date'' tN sell a specified security ''S'' at an agreed price ''PN'' to ''B'' (ii) ''A'' will on the ''far date'' tF (after tN) re-purchase ''S'' from ''B'' at a price ''PF'' which is already pre-agreed on the deal date. If we assume positive interest rates, the repurchase price PF can be expected to be greater than the original sale price PN. The (time-adjusted) difference (PF-PN)/PN *(tF-tN)/365 is called the ''repo rate''; it can be interpreted as the interest rate for the period between ''near date'' and ''far date''. Changing usage of the term repo A repurchase agreement in the above sense should better be called sell-and-buy-back, because there has been a change in the use of the expression repo during the last years . Today, a repo describes a collateralised borrowing that has identical cash flows as a ''sell-and-buy-back'', with the sole difference that the asset is not sold, but instead pledged as a collateral: in the ''sell-and-buy-back transaction'' the ownership and possession of ''S'' are transferred at tN from a ''A'' to ''B'' and in tF transferred back from ''B'' to ''A''; controversely, in the repo only the possession is temporarily transferred to ''B'' whereas the ownership remains with ''A''. ==Structure and other terminology== A reverse repo is a repo with the roles of ''A'' and ''B'' exchanged. In a repo the party ''B'' acts as a lender of cash, whereas the seller ''A'' is acting as a borrower of cash, using the security as collateral; in a reverse repo (''A'') is the lender and (''B'') the borrower. A repo is economically similar to a secured loan, with the buyer (effectively the lender or investor) receiving securities for collateral to protect himself against default by the seller. The party who initially sells the securities is effectively the borrower. Almost any security may be employed in a repo, though highly liquid securities are preferred as they are more easily disposed of in the event of a default and, more importantly, they can be easily obtained in the open market where the buyer has created a short position in the repo security by a reverse repo and market sale; by the same token, non liquid securities are discouraged. Treasury or Government bills, corporate and Treasury/Government bonds, and stocks may all be used as "collateral" in a repo transaction. Unlike a secured loan, however, legal title to the securities passes from the seller to the buyer. Coupons (interest payable to the owner of the securities) falling due while the repo buyer owns the securities are, in fact, usually passed directly onto the repo seller. This might seem counterintuitive, as the legal ownership of the collateral rests with the buyer during the repo agreement. The agreement might instead provide that the buyer receives the coupon, with the cash payable on repurchase being adjusted to compensate, though this is more typical of sell/buybacks. Although the transaction is similar to a loan, and its economic effect is similar to a loan, the terminology differs from that applying to loans: the seller legally repurchases the securities from the buyer at the end of the loan term. However, a key aspect of repos is that they are legally recognised as a single transaction (important in the event of counterparty insolvency) and not as a disposal and a repurchase for tax purposes. The following table summarizes the terminology: 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Repurchase agreement」の詳細全文を読む スポンサード リンク
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