Repurchase
in sentence
12 examples of Repurchase in a sentence
Financial firms sell assets, like Treasury bonds or real-estate securities, for cash, and promise to buy those assets back (i.e., to
repurchase
them or, for short, to do a “repo”), typically the following day.
It did so by using
repurchase
agrements to buy for its own account the majority of trade acceptances issued in New York.
Instead, the PBOC is employing unconventional regulatory tools – such as short-term liquidity operations, standing lending facilities, and reverse
repurchase
agreements – to boost the money supply, driving the
repurchase
rate to a ten-year low.
As long as the marginal piece of German debt is used as collateral for a short-term loan or as the centerpiece of a
repurchase
agreement to gain liquidity, its value is much more likely to be determined by the terms on which the ECB accepts it as collateral than by its fundamentals.
And, if financial innovations like derivatives and short-term
repurchase
agreements have made markets more volatile and fragile, a Tobin tax could help to stabilize and strengthen them.
Under a
repurchase
agreement, for example, monetary authorities buy assets from an illiquid bank under the promise that the bank will then buy the assets back on a specified date and for a specified price.
I got by selling the bonds when I borrowed them on January 1, minus the €7.2m that I had to pay to
repurchase
them on June 30, minus the €250,000 in interest that I had to pay Goldman Sachs for the six-month loan.
In some important cases, companies have even issued debt to finance the
repurchase
of their shares.
Indeed, as the renminbi strengthened over the last month, the People’s Bank of China did not intervene strongly to
repurchase
dollars from commercial banks – a decision rarely seen in recent years.
S&P 500 companies now routinely use profits or borrowed money to
repurchase
their shares, instead of investing in new factories, business lines, or other key capital expenditures.
In March, the Fed quickly resurrected a network of bilateral currency-swap arrangements with some 14 foreign central banks, and introduced new
repurchase
(repo) facilities for an even broader array of monetary authorities, thus ensuring an ample supply of US dollars to meet global liquidity needs.
As Vera Songwe, the Executive Secretary of the United Nations Economic Commission for Africa, has proposed, a special purpose vehicle (SPV) could also be created, modeled on the
repurchase
(“repo”) facilities that American and European central banks often use to support the smooth functioning of markets.
Related words
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