September 2012
Beginner
328 pages
7h 42m
English
A buy/sell-back is a pair of simultaneous transactions: the first is the purchase of a bond or other asset and the second is the sale of the same asset back again from the same counterparty for settlement on a later date. A sell/buy-back is the same transaction viewed from the counterparty’s point of view.
When speaking generally, without being specific about which way round one is in the transaction (i.e. buying first or selling first), the term ‘buy/sell-back’ is used rather than ‘sell/buy-back’.
A sell/buy-back is essentially the same as a repo but the two legs of the deal, although dealt simultaneously, are treated as two separate transactions rather than one. The economics of ...
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