repurchase agreement

简明释义

购买协议

英英释义

例句

1.A repurchase agreement is often used in the money markets for liquidity management.

在货币市场中，回购协议常用于流动性管理。

2.The bank entered into a repurchase agreement to secure short-term funding.

银行签订了一个回购协议以确保短期融资。

3.Investors often use a repurchase agreement as a way to earn interest on their cash holdings.

投资者通常使用回购协议作为赚取现金持有利息的一种方式。

4.In a repurchase agreement, the seller agrees to buy back the securities at a later date.

在回购协议中，卖方同意在稍后的日期回购证券。

5.The central bank can influence interest rates through repurchase agreements.

中央银行可以通过回购协议影响利率。

作文

A repurchase agreement is a financial transaction in which one party sells an asset to another party with the agreement to repurchase that asset at a later date for a specified price. This type of agreement is commonly used in the financial markets as a means of raising short-term capital. Essentially, a repurchase agreement functions like a secured loan, where the asset sold serves as collateral. The seller receives immediate cash while agreeing to buy back the asset, usually government securities or other high-quality assets, at a predetermined price. The mechanics of a repurchase agreement are relatively straightforward. Consider a bank that needs liquidity to meet its short-term obligations. It can enter into a repurchase agreement with another financial institution. In this scenario, the bank sells a set of government bonds to the institution and agrees to repurchase them the following day at a slightly higher price. The difference between the selling price and the repurchase price represents the interest on the loan, often referred to as the repo rate.One of the key advantages of a repurchase agreement is that it provides a low-cost source of funding for institutions. Because these transactions are typically backed by high-quality collateral, they are considered low-risk. This makes repurchase agreements particularly attractive during times of market volatility when other forms of borrowing may be more expensive or difficult to obtain.Moreover, repurchase agreements play a crucial role in the broader financial system. They enhance liquidity in the markets and help central banks implement monetary policy. For instance, during economic downturns, central banks may engage in open market operations involving repurchase agreements to inject liquidity into the banking system, thereby stimulating economic activity.However, despite their benefits, repurchase agreements are not without risks. The most significant risk is counterparty risk, which refers to the potential that the other party in the transaction may default on their obligations. If the buyer fails to return the collateral, the seller may face significant losses. Therefore, it is crucial for institutions engaging in repurchase agreements to conduct thorough due diligence on their counterparties.In conclusion, a repurchase agreement is a vital financial instrument that facilitates liquidity and funding in the financial markets. By allowing institutions to raise cash quickly while providing security through collateral, it serves as an essential tool for managing short-term financing needs. Understanding the mechanics and implications of repurchase agreements is crucial for anyone involved in finance, as they play a pivotal role in maintaining the stability and efficiency of financial markets.

回购协议（repurchase agreement）是一种金融交易，其中一方将资产出售给另一方，并约定在未来某个日期以指定价格回购该资产。这种类型的协议通常在金融市场中用作筹集短期资金的一种手段。基本上，repurchase agreement 的功能类似于有担保的贷款，出售的资产作为抵押。卖方立即获得现金，同时同意以预定价格回购资产，通常是政府证券或其他高质量资产。repurchase agreement 的运作机制相对简单。考虑一家需要流动性的银行，以满足其短期义务。它可以与另一家金融机构签订 repurchase agreement。在这种情况下，银行将一组政府债券出售给该机构，并同意在第二天以稍高的价格回购。出售价格与回购价格之间的差额代表了贷款的利息，通常称为回购利率。repurchase agreement 的一个主要优势是为机构提供低成本的融资来源。由于这些交易通常以高质量的抵押品作为支持，因此被认为风险较低。这使得repurchase agreements 在市场波动时期尤其具有吸引力，此时其他形式的借贷可能更昂贵或难以获得。此外，repurchase agreements 在更广泛的金融系统中也发挥着至关重要的作用。它们增强了市场的流动性，并帮助中央银行实施货币政策。例如，在经济下行期间，中央银行可能会通过涉及repurchase agreements的公开市场操作向银行系统注入流动性，从而刺激经济活动。然而，尽管有其好处，repurchase agreements 也并非没有风险。最显著的风险是对手风险，即交易中另一方可能违约的潜在风险。如果买方未能归还抵押品，卖方可能面临重大损失。因此，参与repurchase agreements 的机构必须对其交易对手进行彻底的尽职调查。总之，repurchase agreement 是一种重要的金融工具，有助于金融市场的流动性和融资。通过允许机构迅速筹集现金，同时通过抵押品提供保障，它成为管理短期融资需求的基本工具。理解repurchase agreements 的机制和影响对于任何参与金融的人来说都至关重要，因为它们在维持金融市场的稳定和效率方面发挥着关键作用。