An agreement under which – an asset is sold, – but at the same time the seller is entitled and obligated to – repurchase the asset at a specified price on a given date or on demand (the sale of an asset; at the same time an agreement is made to repurchase the asset at a specified price on a given date or on demand). – Such an agreement is economically similar to a collateralized loan, but without transferring ownership of the collateral. The ECB uses fixed-maturity repurchase agreements in its reverse transactions. – See general collateral repo, repurchase agreement, reverse repurchase agreement, repurchase option. – See ECB Annual Report 2001, p. 232 (for a more detailed definition); ECB Monthly Bulletin, October 2007, p. 93 ff. (comparing collateral arrangements at the ECB with the U.S. and Japan; many overviews).
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