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Home > QFINANCE Dictionary > Definition of overnight repo

Definition of

overnight repo

Banking

arrangement for temporary sale for cash a repurchase agreement where banks sell securities for cash and repurchase them the next day at a higher price. This type of agreement is used by central banks as a means of regulating the money markets.

overnight repo - Related Articles

  • Understanding and Using the Repos Market

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    Repos are contracts for the sale and future repurchase of a financial asset, normally treasury securities. The annualized rate of interest paid on the loan is known as the repo rate. Repos can be of any duration, but are most commonly overnight loans, or overnight repos. Repos longer than

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    The normal method by which an NCB lends to its banks is via repos—effectively, loans against collateral approved by the ECB. But because Irish banks ran short of eligible collateral, the CBI has made increasing use of emergency liquidity assistance (ELA). ELA is overnight lending which the CBI
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  • Investing Cash: Back to Basics

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    Going forward, simplicity is also going to be key. Historically, floating-rate instruments, asset-backed securities, medium-term notes and repos may have seemed ideally suited to a money market portfolio. That has proved costly for some, particularly as far as liquidity is concerned. For a pure
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  • The International Role of Islamic Finance

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    At the moment, there is no shariah-compliant short-term Islamic money market (of less than one-week maturity) in local currency or in US dollars, and Islamic repo markets (for funding liquidity) have not yet developed. Islamic money markets with longer maturities sometimes suffer from an unreliable clearing
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Definitions of ’overnight repo’ and meaning of ’overnight repo’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’overnight repo’ and other financial terms with our online QFINANCE Financial Dictionary.

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