QUICK DEFINITION
Repo is a repurchase agreement in which one party sells securities and agrees to repurchase them later, economically functioning as secured borrowing.
WHY IT MATTERS
Why Repo matters in bond markets
Repo is a core source of short-term funding and collateral mobility across government-bond markets.
MARKET CONTEXT
How to think about it
Bond investors use repo as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Repo important for fixed-income investors?
← Back to the Bond Market Glossary Yes. Repo is a core source of short-term funding and collateral mobility across government-bond markets.