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Reverse Repurchase Agreement Preklad

If the purpose of the repoe is to borrow money, it is not technically a loan: the ownership of the securities in question actually comes and goes between the parties involved. Nevertheless, these are very short-term transactions with a guarantee of redemption. The parts of the repurchase and reverse-repurchase agreement are defined and agreed upon at the beginning of the agreement. Reverse repurchase agreements (RRPs) are the end of a pension purchase agreement. These financial instruments are also called secured loans, buy-back/sale loans and loans for sale/buyback. An RRP differs from Buy/Sell Backs in a simple but clear way. Purchase/sale agreements document each transaction separately and provide a clear separation in each transaction. In this way, each transaction can be legally isolated, without the other transaction being fully feasible. On the other hand, the RRPs have legally documented every step of the agreement under the same treaty and guarantee availability and right at every stage of the agreement.

Finally, the warranty in an RRP, although the security is essentially acquired, usually never changes the physical location or actual property. If the seller is late to the buyer, the warranties must be physically transferred. How does the desk communicate operating results? At the end of a reverse-retirement transaction, the desk publishes a summary of the results including the full amount submitted, the total amount accepted and the premium rate. What are the reverse repurchase agreement (RRPs) operations carried out by the desk? The Open Market Trading Desk (the Desk) of the Federal Reserve Bank of New York (Fed of New York) is responsible for setting up open market operations under the approval and management of the Federal Open Market Committee (FOMC). A reverse repurchase agreement, executed by the desk and also called “reverse-repo” or “RRP,” is a transaction in which the desk sells a guarantee to an eligible counterparty with the repurchase agreement of the same security at a certain price at a given time in the future. The difference between the sale price and the purchase price, as well as the duration between the sale and purchase, imply an interest rate paid by the Federal Reserve for the transaction. A reverse pension contract, or “reverse pension,” is the purchase of securities with the agreement to sell them at a higher price at any given time. For the party that sells the guarantee (and agrees to buy it back in the future), it is a buy-back (RP) or repo contract; for the other end of the transaction (purchase of security and consent to the sale in the future), it is a reverse repurchase agreement (RRP) or Reverse Repo.