Retail Repurchase Agreement

AAA

DEFINITION of 'Retail Repurchase Agreement'

An alternative to regular savings deposits. Under a retail repurchase agreement, an investor buys a pool of securities in aggregate denominations of less than $100,000 for a term of less than 90 days. The agreement is not automatically renewable.

Also known as a "retail repo."

INVESTOPEDIA EXPLAINS 'Retail Repurchase Agreement'

Unlike regular savings deposits, retail repurchase agreements are not insured by the Federal Deposit Insurance Corporation, are not guaranteed, and may lose value. They are classified as securities transactions and, as such, are subject to default risk.

RELATED TERMS
  1. Interest

    1. The charge for the privilege of borrowing money, typically ...
  2. Government Security

    A bond (or debt obligation) issued by a government authority, ...
  3. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities. ...
  4. Reverse Repurchase Agreement

    The purchase of securities with the agreement to sell them at ...
  5. Savings Account

    A deposit account held at a bank or other financial institution ...
  6. Implied Repo Rate

    The rate of return that can be earned by simultaneously selling ...
Related Articles
  1. Get A Short-Term Advantage In The Money ...
    Personal Finance

    Get A Short-Term Advantage In The Money ...

  2. Buy Treasuries Directly From The Fed
    Active Trading

    Buy Treasuries Directly From The Fed

  3. How do leverage ratios help to regulate ...
    Economics

    How do leverage ratios help to regulate ...

  4. What is the difference between a state ...
    Credit & Loans

    What is the difference between a state ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center