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. Savings Account

    A deposit account held at a bank or other financial institution ...
  2. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities. ...
  3. Implied Repo Rate

    The rate of return that can be earned by simultaneously selling ...
  4. Interest

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

    A bond (or debt obligation) issued by a government authority, ...
  6. Reverse Repurchase Agreement

    The purchase of securities with the agreement to sell them at ...
RELATED FAQS
  1. Why is marketing important to a company in the utilities sector?

    A banker's acceptance is a money market instrument and, like most money markets, it is relatively safe and liquid. This is ... Read Full Answer >>
  2. What is the difference between a modified duration and a Macaulay duration?

    Individuals have a handful of options for places to keep the funds they wish to keep guarded from the volatility and risk ... Read Full Answer >>
  3. How do I calculate a bond's modified duration using Excel?

    Investors with a focus on preservation of capital often seek out fixed income solutions, such as government or low-risk municipal ... Read Full Answer >>
  4. How do I calculate the loan-to-value ratio using Excel?

    Investors have a variety of pooled fund investment options, including mutual funds and money market funds, that can meet ... Read Full Answer >>
  5. What is the Activities of Daily Living (ADL) hierarchy scale?

    While there are some important similarities between a post-dated check and a banker's acceptance, each is a different financial ... Read Full Answer >>
  6. Are money market accounts for short-term investments a good idea?

    Money market accounts are a good idea for short-term investments. Some of the desired traits in short-term investments are ... Read Full Answer >>
Related Articles
  1. Personal Finance

    Get A Short-Term Advantage In The Money Market

    This investment vehicle is often the perfect stop-gap measure for growing your money.
  2. Active Trading

    Buy Treasuries Directly From The Fed

    If you want government securities, go straight to the source. We'll show you how.
  3. Economics

    Explaining the Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business.
  4. Credit & Loans

    The Pros & Cons Of Personal Loans vs. Credit Cards

    One is not like the other. We help you decide where to borrow money from.
  5. Professionals

    Impact of SEC's New Money Market Fund Rules

    A look at how new rules introduced by the SEC will impact money market funds.
  6. Investing Basics

    What is an Asset Class?

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
  7. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  8. Investing Basics

    Five Successful Investing Strategies

    The secret to investing is that there is no secret. Success is all about knowing yourself, getting the basics and using both to make the right choices.
  9. Insurance

    The Government And Risk: A Love-Hate Relationship

    Though the U.S. government can help its citizens by subsidizing risky loans, the costs always come back to the taxpayers.
  10. Insurance

    Bag The Best Bank Account

    Take advantage of the deals banks offer, and find the right account for your financial situation.

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center