Retail Repurchase Agreement

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."

BREAKING DOWN '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. Repurchase Agreement - Repo

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

    The purchase of securities with the agreement to sell them at ...
  3. Term Repurchase Agreement

    Under a term repurchase agreement, a bank will agree to buy securities ...
  4. Liquidity Adjustment Facility

    A tool used in monetary policy that allows banks to borrow money ...
  5. Direct Repurchase

    The buying of shares in a publicly-traded company by the company ...
  6. Gentleman's Agreement

    An unwritten agreement or transaction backed only by the integrity ...
Related Articles
  1. Investing Basics

    What's a Reverse Repurchase Agreement?

    A reverse repurchase agreement is the buyer side of a repurchase agreement (also called a repo).
  2. Retirement

    Money Market: Repos

    Repo is short for repurchase agreement. Those who deal in government securities use repos as a form of overnight borrowing. A dealer or other holder of government securities (usually T-bills) ...
  3. Savings

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
  4. Stock Analysis

    Special Dividends Trump Share Repurchases Every Time

    Let's look at share repurchases to demonstrate why special dividends are far superior to buybacks.
  5. Stock Analysis

    Companies With Profitable Stock Buybacks

    We look at five apparel companies and how well they've done buying back shares. Not all are created equal.
  6. Stock Analysis

    Companies Whipping Out Wallets To Buy Back Stock

    While a stock repurchase is no guarantee that a stock will increase in value, it may be a good sign that better times are ahead.
  7. Investing

    Wal-Mart's Share Repurchase Isn't All Good

    Wal-Mart announced huge internal investments along with an aggressive share repurchase program that isn't as good as it initially sounds.
  8. Savings

    Explaining Term Deposits

    A term deposit (more often called a certificate of deposit or CD) is a deposit account that is made for a specific period of time.
  9. Savings

    The Share Buyback Report: The Consumer Discretionary Sector (XLY)

    Analyze historical share repurchase data for the discretionary sector and identify the financial and economic factors that drive buybacks over time and by company.
  10. Savings

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
RELATED FAQS
  1. What is the difference between a repurchase agreement and reverse repurchase agreement?

    Learn how a repurchase agreement is a form of collateralized lending and a reverse repurchase agreement is a form of collateralized ... Read Answer >>
  2. What tax implications are there for parties involved with a reverse repurchase agreement?

    Learn about the tax consequences that the buyer can face as a result of a reverse repurchase agreement ("reverse repo") with ... Read Answer >>
  3. What risks does the dealer (lender) in a reverse repurchase agreement take on?

    Read about the lender risks of participating in reverse repurchase agreements or for dealers who use the Fed's overnight ... Read Answer >>
  4. What is the difference between a term and open repurchase agreement?

    Learn about the main difference between a term and open repurchase agreement, including when each is used and how the interest ... Read Answer >>
  5. What is the primary use of reverse repurchase agreements?

    Discover how the Federal Reserve utilizes reverse purchase agreements for the primary purpose of offsetting temporary shifts ... Read Answer >>
  6. In a repurchase agreement (repo) why is a longer tenor more risky?

    Learn about the relationship between repo tenor length and risk, and find out how tenor affects interest rate risk and counterparty ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center