repurchase agreements

简明释义

回购协议

英英释义

例句

1.The central bank implemented repurchase agreements to inject liquidity into the banking system.

中央银行实施了回购协议以向银行系统注入流动性。

2.The bank entered into several repurchase agreements to manage its short-term liquidity needs.

银行签订了几份回购协议以管理其短期流动性需求。

3.A repurchase agreement typically involves selling securities with an agreement to buy them back later.

一份回购协议通常涉及出售证券，并约定稍后再买回。

4.During the financial crisis, many institutions relied heavily on repurchase agreements for funding.

在金融危机期间，许多机构严重依赖回购协议来获得资金。

5.Investors often use repurchase agreements as a way to earn interest on their cash reserves.

投资者通常使用回购协议作为赚取现金储备利息的一种方式。

作文

In the world of finance, understanding various instruments and agreements is crucial for both investors and institutions. One such important financial instrument is the repurchase agreements. A repurchase agreement, often abbreviated as repo, is a form of short-term borrowing primarily used in the money markets. In a typical repurchase agreement, one party sells an asset, usually government securities, to another party with the agreement to repurchase it at a later date for a higher price. This mechanism allows the seller to obtain immediate cash while providing the buyer with a secure investment backed by collateral.The mechanics of a repurchase agreement are relatively straightforward. For instance, let’s say a bank needs liquidity to meet its short-term obligations. It can enter into a repurchase agreement with another financial institution. The bank sells Treasury bonds worth $1 million to the other institution and agrees to buy them back in one week for $1.01 million. The $10,000 difference represents the interest on the loan, effectively making the repurchase agreement a collateralized loan.One of the key features of repurchase agreements is their safety. Because these transactions are secured by collateral, they are considered low-risk compared to unsecured loans. This security makes repurchase agreements a popular choice among institutional investors and banks. They provide a means to manage liquidity and generate returns on idle cash. Furthermore, the short-term nature of repurchase agreements allows investors to quickly adjust their positions in response to changing market conditions.Moreover, repurchase agreements play a significant role in the broader financial system. They help facilitate the smooth functioning of the money market, which is essential for maintaining liquidity in the economy. By allowing institutions to borrow and lend money effectively, repurchase agreements contribute to the stability of financial markets. During times of economic uncertainty, the ability to engage in repurchase agreements can be vital for financial institutions, ensuring they can meet their short-term funding needs without resorting to more expensive financing options.However, despite their benefits, repurchase agreements are not without risks. The primary risk involves counterparty risk, which is the risk that the other party in the agreement may default on their obligation to repurchase the asset. If the seller fails to buy back the securities, the buyer may be left holding the asset, which could decline in value. Additionally, in times of financial stress, the market for repurchase agreements can dry up, making it difficult for institutions to find willing counterparties.In conclusion, repurchase agreements are a fundamental component of the financial landscape, offering a way for institutions to manage liquidity and invest cash securely. While they come with inherent risks, their benefits make them an attractive option for many financial entities. Understanding how repurchase agreements function and their implications in the financial markets is essential for anyone involved in finance, whether as an investor, a banker, or a policymaker. As the financial world continues to evolve, the importance of repurchase agreements will likely remain significant, shaping the way institutions interact and manage their resources.

在金融世界中，理解各种工具和协议对投资者和机构至关重要。其中一个重要的金融工具是回购协议。回购协议，通常简称为repo，是一种主要用于货币市场的短期借贷形式。在典型的回购协议中，一方将资产（通常是政府证券）出售给另一方，并同意在稍后的日期以更高的价格回购。这种机制使卖方能够立即获得现金，同时为买方提供了一种以抵押品作为担保的安全投资。回购协议的机制相对简单。例如，假设一家银行需要流动资金来满足其短期义务。它可以与另一家金融机构签订回购协议。该银行将价值100万美元的国债出售给另一家机构，并同意在一周后以101万美元的价格回购。这10000美元的差额代表了贷款的利息，有效地使回购协议成为一种有抵押的贷款。回购协议的一个关键特征是其安全性。由于这些交易是以抵押品作为担保，因此与无担保贷款相比，它们被认为是低风险的。这种安全性使得回购协议成为机构投资者和银行的热门选择。它们提供了一种管理流动性和对闲置现金产生收益的手段。此外，回购协议的短期性质使投资者能够迅速调整其头寸，以应对不断变化的市场条件。此外，回购协议在更广泛的金融系统中发挥着重要作用。它们有助于促进货币市场的顺利运作，而这对于维持经济中的流动性至关重要。通过允许机构有效地借贷资金，回购协议有助于金融市场的稳定。在经济不确定时期，参与回购协议的能力对金融机构至关重要，确保它们能够满足短期融资需求，而不必诉诸于更昂贵的融资选择。然而，尽管有其好处，回购协议并非没有风险。主要风险涉及对手风险，即协议另一方可能违约，不履行回购资产的义务。如果卖方未能回购证券，买方可能会持有该资产，而该资产可能会贬值。此外，在金融压力时期，回购协议的市场可能会枯竭，使机构难以找到愿意的交易对手。总之，回购协议是金融领域的基本组成部分，为机构提供了一种安全管理流动性和投资现金的方式。尽管它们存在固有风险，但其带来的好处使其对许多金融实体具有吸引力。理解回购协议的运作方式及其在金融市场中的影响，对于任何参与金融活动的人，无论是投资者、银行家还是决策者，都是至关重要的。随着金融世界的不断发展，回购协议的重要性可能仍将显著，塑造机构之间的互动和资源管理方式。