In a security transaction, the agreement is called a “reverse repo” from the perspective of the __________?

Q: In a security transaction, the agreement is called a “reverse repo” from the perspective of the __________?

Security buyer - A “reverse repo” (reverse repurchase agreement) occurs when an entity buys securities with an agreement to sell them back at a later date. From the buyer’s perspective, this is a reverse repo because they are purchasing the securities temporarily and will return them in the future. For the seller, the same transaction is a repo.

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Security buyer - A &ldquo;reverse repo&rdquo; (reverse repurchase agreement) occurs when an entity buys securities with an agreement to sell them back at a later date. From the buyer&rsquo;s perspective, this is a reverse repo because they are purchasing the securities temporarily and will return them in the future. For the seller, the same transaction is a repo.

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