Definition

A repurchase agreement is a contract to sell securities, usually government bonds, and repurchase them shortly after at a slightly higher price.

Key Takeaways

  • A repurchase agreement (repo) is a short-term agreement to sell securities and repurchase them later at a slightly higher price.
  • The party selling the repo is effectively borrowing whatever is traded for the securities, and the implicit interest paid is the difference in price from the initial sale to repurchase.
  • Repos and reverse repos are for short-term borrowing and lending, often from overnight to 48 hours.
  • The implicit interest rate on these agreements is known as the repo rate.
  • The U.S. Federal Reserve uses repos and reverse repos to manage the money supply and influence short-term interest rates, a crucial part of the Fed's monetary policymaking.

What Is a Repurchase Agreement?

Repurchase agreements, commonly known as repos, are short-term borrowing tools in government securities markets. A dealer sells securities, agreeing to buy them back at a higher price soon after. This transaction helps financial institutions manage cash and capital, with the implied interest rate being a key factor. The Federal Reserve has shaped repo market dynamics in recent years.

The dealer sells government securities to an investor, usually overnight, and buys them back the next day at a slightly higher price. The small price difference is an implicit overnight interest rate. Repos are typically used to raise short-term capital. They are also commonly used in central bank open market operations.1 During the early 2020s, the Fed made changes that massively increased the volume of repos traded, a trend it began to unwind in 2023.23

The party selling the security and agreeing to repurchase it later is involved in a repo. Meanwhile, the party buying the security and agreeing to sell it back is engaged in a reverse repurchase agreement or reverse repo.1

The language around repos gets abstract, even dry, very fast, but the daily work of finance is done through and with these (mostly) overnight flows. For anyone interested in the market, repos are a crucial indicator of the liquidity of the capital markets that run our economy.

Illustration of the repurchase agreement process. Repurchase Agreement definition: A form of Short-term borrowing for dealers in government securities.
BNY Mellon and JPMorgan are intermediaries in repurchase agreements in the U.S.,
which reduces the operational risks for each counterparty.

Investopedia / Katie Kerpel

How Repurchase Agreements Work

The Fed became more involved in the repo market in 2019. Establishing the Standing Repo Facility (SRF) in 2021 and the Overnight Reverse Repo Facility (ON RRP), which was officially adopted in 2015, has given it powerful tools for managing liquidity in American short-term funding markets.4

Repurchase agreements are considered safe because they use securities like Treasury bonds and mortgage-backed securities (MBSs) as collateral. Classified as a money market instrument, a repo is a short-term, collateral-backed, interest-bearing loan. The buyer acts as a short-term lender, while the seller is a short-term borrower.41

Repurchase agreements are made between various parties. The Fed uses repos to regulate the money supply and bank reserves. Individuals typically use them to finance the purchase of debt securities or other investments. Repurchase agreements are strictly short-term investments, and their maturity period is called the "rate," "term," or "tenor."1

Despite some similarities with collateralized loans, repos count as purchases. However, because the buyer only temporarily owns the security, these agreements are usually treated as loans for tax and accounting purposes.5 When there's a bankruptcy, repo investors can generally sell their collateral. This distinguishes repos from collateralized loans; bankrupt investors would be subject to an automatic stay for most collateralized loans.6

Example of a Repurchase Agreement

Suppose a bank needs a quick cash injection. It agrees with an investor, who offers to give the bank the money it needs as long as it's paid back quickly with interest. In the meantime, the bank also puts up Treasury bonds as collateral in return.

The bank sells the bonds to the investor, agreeing that it will repurchase them very soon at a slight premium. The Treasury bonds serve as collateral: The bank temporarily relinquishes control of the bonds for the cash it needs.7 Then, at a preset time, the bank gets them back by paying back the money it received plus a little extra.

Repurchase vs. Reverse Repo Agreements: Key Differences

A reverse repo agreement is a repurchase agreement seen from the buyer's perspective. Every trade has two parties: the buyer and the seller. Whether it’s a repo agreement or a reverse repo agreement depends on which side of the trade you are on.

It’s a repo transaction for the party initially selling the security, with the agreement to repurchase it, and a reverse repo for the investor buying the security under the stipulation of selling it back shortly.4

Financial institutions commonly use reverse repos as short-term lending. Central banks also use them to reduce the money supply. A repo can put money into the banking system, while a reverse repo can borrow money from the system when there's too much liquidity.8

For example, the Fed used repos to inject liquidity into the economy in 2020 at the height of the COVID-19 pandemic. It used reverse repos as part of its quantitative tightening in the years that followed.910

Term vs. Open Repurchase Agreements: Understanding the Time Frames

The major difference between a term and an open repo lies in the time between the sale and the repurchase of the securities.

Repos with a specific maturity date (usually the following day, though it can be up to a week) are term repurchase agreements.11 A dealer sells securities to a counterparty who agrees to repurchase them at a higher price on a given date. The counterparty holds the securities during the deal and earns interest from the difference between the sale price and the buyback price. The interest rate is fixed and paid at maturity by the dealer. A term repo invests cash or finances assets when the parties know how long they need.12

An open repurchase agreement or "on-demand repo" works the same way as a term repo, except the dealer and counterparty agree to the transaction without setting the maturity date. Instead, either party can end the trade by giving notice to the other before an agreed-upon deadline that arises daily. If an open repo isn't closed, it automatically rolls over into the next day. Interest is paid monthly, and the rate is periodically repriced by mutual agreement.13

The interest rate on an open repo is generally close to the federal funds rate.1415 An open repo is used to invest cash or finance assets when the parties don't know how long they will need to do so.16 But most open agreements conclude within one to two years.

Why the Tenor Matters in Repurchase Agreements

Repos with longer tenors, or terms, are riskier because more can happen before maturity, affecting repayment. The longer the tenor, the more time there is for interest rate fluctuations to influence the value of the repurchased asset.

This is similar to the factors that affect bond interest rates. Longer-duration bonds usually pay higher interest rates. Investors buy long-term bonds as part of a wager that interest rates won't rise substantially during the term. A tail event—a rare occurrence with a significant impact—is more likely to drive interest rates above forecast ranges over longer time spans. If there is a period of high inflation, the interest paid on bonds preceding that period will be worth less in real terms.

The same principles apply to repos. The longer the repo term, the more likely the collateral security's value will fluctuate before the repurchase. Business activities can affect the repurchaser's ability to complete the contract as well. Counterparty credit risk is primary in repos.

As with any loan, the creditor bears the risk that the debtor won't repay the principal. Repos function as collateralized debt—collateral reduces the total risk. And because the repo price exceeds the collateral's value, these agreements tend to be mutually beneficial.17

Different Kinds of Repurchase Agreements Explained

There are three main types of repurchase agreements:

Third-Party Repos

Third-party repos, or tri-party repos, are the most common. It involves three entities: a clearing agent or bank conducts the transaction between the buyer and seller, and protects their interests. It holds the securities and ensures that the seller receives cash at the onset, that the buyer transfers funds to benefit the seller, and that the securities are delivered at maturity. The clearing bank in the U.S. is Bank of New York Mellon (BK). While still a third-party service provider, JPMorgan Chase & Co. (JPM) ended its service as a clearing bank in 2018.18

In addition to taking custody of the securities involved, clearing agents also value the securities and ensure that a set margin is applied. They settle the transaction on their books and help dealers with collateral.19 However, clearing banks don't act as matchmakers: They don't find dealers for cash investors or vice versa, and they don't broker the deals.

Typically, clearing banks begin to settle repos early in the day, although they're not technically settled until the end of the day. This delay usually means that billions of dollars of intraday credit are extended to dealers daily. These agreements stood at about $3.1 trillion in September 2025 from BNY's platform out of the repurchase agreement market.20

Specialized Delivery Repo

Specialized repos have a bond guarantee at the beginning of the agreement and at maturity, along with the collateral. This type of agreement is uncommon.

Held-in-Custody Repo

In this kind of agreement, the seller gets cash for the security but holds it in a custodial account for the buyer. This type is even less common than specialized delivery repos because there is a risk that the seller may become insolvent and the borrower may not have access to the collateral.

Understanding Near and Far Legs in Repo Transactions

Repurchase agreements involve uncommon terminology. One common term is the “leg.” For instance, the part of the repurchase agreement in which the security is initially sold is sometimes called the “start leg,” while the repurchase that follows is the “close leg.”

These terms are also sometimes exchanged for “near leg” and “far leg,” respectively. The table below is a cheat sheet of terms often used when talking about repos.

Key Repurchase and Reverse Repo Agreement Terms

CONTINUES:

SOURCE:
https://www.investopedia.com/terms/r/repurchaseagreement.asp


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The EU demands war - Bankers will `haircut` debt if Russia is conquered

Live EU Government Debt Map

If you added together every euro of public debt from all 27 EU countries, you’d get the number shown below, a live, ticking estimate that never stands still.

EU-27 total government debt (live estimate)
€15,263,828,049,288
  • The EU Debt Map visualizes the combined national debts of the European Union in real time. Each country’s most recent Eurostat data point is used as a baseline, then projected second by second to show how fast public debt continues to grow (or, in rare cases, shrink).
    - This isn’t just a statistic, it’s a pulse of Europe’s financial health. Whether you’re comparing France to Germany, tracking Italy’s debt ratio, or exploring smaller economies like Estonia and Malta, this map translates complex fiscal data into an intuitive visual that updates every second. https://www.eudebtmap.com/

  • In finance, a haircut is the difference between the current market value of an asset and the value ascribed to that asset for purposes of calculating regulatory capital or loan collateral.
  • IT HAPPENED: Europe Sells ALL U.S Debt to Pay Off Trump’s Tariff.

T=1767063852 / Human Date and time (GMT): Tue, 30th Dec 2025, 03.04

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29 Dec, 2025 21:17
HomeWorld News

The EU has everything to gain from peace. Why does it keep insisting on war?

At the very moment America steps back from the abyss, Western European elites are pushing the continent closer to it
Ladislav Zemánek

By Ladislav Zemánek, non-resident research fellow at China-CEE Institute and expert of the Valdai Discussion Club

The EU has everything to gain from peace. Why does it keep insisting on war?
©  Getty Images Europe / Pool

Europe is no longer sleepwalking into disaster. It is marching toward it with wide-open eyes, clenched fists, and a disturbing sense of moral self-satisfaction. At the very moment when the United States, under Donald Trump’s leadership, is returning to diplomacy, restraint, and strategic realism, the European Union’s governing elite is choosing escalation, economic self-harm, and permanent confrontation with Russia.

This is ideological obsession masquerading as virtue. Nothing captures this moral and intellectual collapse more clearly than the EU’s recent push to expropriate Russia’s frozen sovereign assets. Brussels and Berlin have been aggressively pressuring member states to approve a plan to seize up to €210 billion in Russian state funds and funnel them into Ukraine. It is a frontal assault on the principles of sovereign immunity and property rights that underpin the global financial system – and the EU’s own credibility within it.

The fact that this plan was ever taken seriously reveals how far the European leaders have drifted from reality. Confiscating sovereign assets sets a precedent that will haunt the EU for decades, shattering trust among international investors and signaling that legal guarantees in Europe are conditional on political fashion.

Belgium, of all countries, became the unlikely voice of reason. Because most of the frozen Russian assets are held by Euroclear, a firm registered on Belgian soil, Brussels understood the obvious: when Russia inevitably challenges this theft in international arbitration, Belgium – not the European Commission – will be left holding the bill. Rather than acknowledging this legitimate concern, EU leaders considered outvoting Belgium altogether, sacrificing national sovereignty on the altar of ideological obsession.

This is what the European Union has become: a bloc that lectures the world about the rule of law while actively conspiring to destroy it when inconvenient.

The reckoning came at the December 18–19 EU summit in Brussels. After sixteen exhausting hours, European governments failed to reach an agreement on confiscating Russian assets. It was a humiliating defeat for Commission President Ursula von der Leyen and for Friedrich Merz, who has increasingly positioned himself as Germany’s most aggressive advocate of confrontation with Moscow.

The grim reality behind the grandstanding: What’s in the EU’s new cash delivery to Kiev
Read more
 The grim reality behind the grandstanding: What’s in the EU’s new cash delivery to Kiev

But instead of stepping back, EU leaders did what they always do when reality intrudes: they borrowed money.

Unable to steal Russian assets outright, the EU agreed on an 'emergency' plan based on €90 billion in joint EU debt – money that will be transferred to Kiev and never repaid. This is not aid; it is a permanent transfer of wealth from European taxpayers to prolong a war that the EU has already lost strategically.

European citizens were not consulted. They never are. They will simply pay – through higher debt servicing, inflation, and reduced public spending – while being lectured about values and sacrifice by the same elites who will never bear the consequences of their decisions.

Yet even in this climate of hysteria, cracks are forming. Czechia, Hungary, and Slovakia refused to follow Brussels off the cliff. Their leaders – Andrej Babiš, Viktor Orbán, and Robert Fico – stood against asset confiscation, endless debt, and permanent war. In doing so, they articulated a sovereigntist, peace-oriented vision that is quietly gaining ground across Central Europe, understanding a simple truth Brussels refuses to face: the EU cannot build its future on the permanent demonization of its largest neighbor.

It is no accident that this shift coincides with clear signals from Washington. The Trump administration has made it plain: it will support patriotic forces in Europe willing to challenge liberal dogma and endless war. For the first time in years, European dissenters are no longer isolated.

What terrifies Brussels is not Russia, but the possibility that EU citizens might realize another path exists.

European progressivists and liberal globalists have driven themselves into a kind of collective hysteria. Anyone who questions escalation is branded immoral. Anyone who speaks of negotiation is accused of betrayal. The result is a foreign policy driven not by outcomes, but by emotional conformity and performative outrage. Europe’s leaders talk endlessly about values yet ignore consequences.

Donald Trump described the EU as a decaying collection of countries ruled by weak leaders. The response from the European Commission was pure denial: a self-congratulatory declaration of gratitude for its “excellent leaders,” starting with von der Leyen herself. Nothing could better illustrate the chasm between the EU’s governing class and the societies they claim to represent.

Gaza, Nord Stream and Kiev’s golden toilets: Top stories of 2025 the West wants you to forget
Read more
 Gaza, Nord Stream and Kiev’s golden toilets: Top stories of 2025 the West wants you to forget

Reality, meanwhile, intrudes. Friedrich Merz has now openly admitted what many feared: NATO troops could end up fighting Russia directly in Ukraine. This is no longer a hypothetical risk. It is a logical endpoint of Europe’s current trajectory. Escalation begets escalation. Red lines dissolve. What began as 'support' inches closer to direct confrontation between nuclear powers.

At the same time, the EU continues to sabotage itself economically. Just days ago, an overwhelming majority of members of the European Parliament voted to ban imports of Russian gas starting in late 2027. Once again, this was framed as independence and prosperity. Once again, it will deliver the opposite.

Energy prices will rise permanently. Industry will continue to flee. Ordinary Europeans will pay more to live poorer lives – all while being told this is necessary for moral reasons. Hungary and Slovakia have already announced legal action against Brussels, recognizing the ban for what it is: economic vandalism dressed up as virtue.

Combined with radical green policies and aggressive cultural progressivism, this agenda is not merely misguided – it is suicidal. The EU is transforming itself into a zone of economic stagnation, social tension, and strategic irrelevance. Spengler’s “decline of the West” no longer reads like prophecy. It reads like a daily briefing.

Against this backdrop, Trump’s approach to Russia looks restorative. Washington increasingly understands that endless proxy war benefits no one – least of all Ukraine. The Trump administration’s goal is clear: end the war, stabilize the region, rebuild Ukraine for people to live normal lives, and restore pragmatic engagement with Russia.

This is what responsible great-power politics looks like. That realism extends to the global order. The White House’s regret over Russia’s expulsion from the G8 and its openness to new formats – a “core five” of the US, China, Russia, India, and Japan – reflect a clear-eyed assessment of power. These are the states that shape global outcomes. The EU, for all its rhetoric, does not. Its absence from such a framework is not an insult, simply a consequence.

Zelensky has proved he is counting on prolonged war – former Ukrainian PM
Read more
 Zelensky has proved he is counting on prolonged war – former Ukrainian PM

The EU has excluded itself through its own arrogance and delusion. By outsourcing strategy to ideology and leadership to bureaucracy, it has made itself irrelevant. Ironically, Europe would still be represented indirectly – by Russia, which increasingly positions itself as a defender of traditional European civilizational values abandoned by the Western European elites.

The great, unspoken truth is this: Europe has everything to gain from US-Russia rapprochement. Peace would mean cheaper energy, revived trade, reduced security risks, and space to repair Europe’s internal fractures. Normal relations with Moscow are not a concession. They are a necessity.

Yet Brussels resists peace with astonishing determination. Why? Because peace would force accountability. It would expose years of catastrophic misjudgment. It would shatter the myth of moral infallibility that the EU’s ruling class clings to so desperately.

Trump’s America is moving forward. Western Europe is digging in.

Unless the EU realigns. Unless it abandons its war obsession and restores diplomacy, it will continue its slide into decline. Peace is not Europe’s enemy. Denial is.

Dear readers! Thank you for your vibrant engagement with our content and for sharing your points of view. Please note that we have switched to a new commenting system. To leave comments, you will need to register. We are working on some adjustments so if you have questions or suggestions feel free to send them to feedback@rttv.ru. Please check our commenting policy

SOURCE:
https://www.rt.com/news/630203-us-peace-eu-war/


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'BREAKING' - Not On MSM News in USA - UNITED KINGDOM 1 MIN AGO: 1,872 Tractors STORM London — Capital UNDER SIEGE Live Video !!! - News UK


Posted By: Mr.Ed [Send E-Mail]
Date: Thursday, 11-Dec-2025 04:17:47
www.rumormill.news/262680




Dec 10, 2025
UNITED KINGDOM
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10.12.2025 UNITED KINGDOM

1 MIN AGO: 1,872 Tractors STORM London — Capital UNDER SIEGE Live! | News UK

1,872 Tractors STORM London - Capital UNDER SIEGE


https://vk.com/video463987841_456259623

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https://www.youtube.com/watch?v=8j-QR8Gnwbw


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11 Dec, 2025 13:23
HomeWorld News

11 Dec, 2025 13:23
HomeWorld News

Anti-corruption protests in EU nation gain momentum (VIDEO)

Thousands took to the streets across Bulgaria demanding the resignation of the prime minister and several other influential politicians

https://mf.b37mrtl.ru/files/2025.12/693ab9c920302720121e43b4.mp4

Tens of thousands of people joined large-scale protests across Bulgaria on Wednesday, accusing the government of long-standing corruption and demanding the resignation of Prime Minister Rossen Zhelyazkov and several other influential political figures.

The demonstrations, among the largest in the country in recent years, took place in Sofia and multiple regional cities. They follow weeks of unrest triggered by a controversial 2026 budget plan that proposed higher taxes and increased social security contributions.

Although the government later withdrew the plan, demonstrations have continued, with participants and opposition parties claiming Sofia has failed to address deeper concerns about corruption and political influence.

In addition to calls for the government to step down, demonstrators have demanded the removal of politician and oligarch Delyan Peevski, the leader of the MRF New Beginning party, which plays a key role in supporting the current coalition government.


https://www.rt.com/news/629312-bulgaria-anti-corruption-protests/video/693ab9f985f5407b977e854d

Peevski has been sanctioned by the US and the UK for corruption and bribery. Critics have accused him of exerting significant influence over Bulgaria’s state institutions to advance his own interests.

Protesters have also urged the ouster of Boyko Borissov, a former three-time prime minister whose GERB-UDF bloc leads the coalition that formed the current government. Opponents have long accused Borissov of enabling entrenched political practices perceived as “state capture.”



Read more EU drowning in corruption – Orban

Local media have noted that the protests have included a large number of Generation Z Bulgarians (born between 1997 and 2012), who have expressed growing frustration with corruption, limited economic prospects and political stagnation. Many have said they no longer feel represented by the country’s political elite.

Government figures have dismissed the demonstrations, stressing that the disputed budget proposals have already been withdrawn. Borissov has also claimed, without providing evidence, that the protests are meant to obstruct Bulgaria’s adoption of the euro on January 1, a process he has linked to the approval of the 2026, budget which was drafted in euros.

Bulgaria has consistently been ranked by a number of international organizations as among the most corrupt countries in the EU, regularly placing near the bottom of all member states in perceived public sector integrity.

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SOURCE:
11 Dec, 2025 13:23
https://www.rt.com/news/629312-bulgaria-anti-corruption-protests/

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