Reverse Repos Hit a New Record High of $2.33 Trillion: Plus a Q&A on Free Money! – Mish Talk

Understanding Repos

A repurchase agreement or repo (RP) is an agreement between parties where a buyer agrees to temporarily purchase a basket or group of securities for a specified period.

The buyer agrees to sell those same assets back to the original owner at a slightly higher price using a reverse repo (RRP). 

Understanding QE

The preceding paragraphs are confusing but think of repos and how Quantitative Easing works. 

Source link

Add a Comment

Your email address will not be published. Required fields are marked *