O'Reilly logo

Key Financial Market Concepts, 2nd Edition by Bob Steiner

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Buy/sell-back and Sell/buy-back

Definition

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’.

How are they used?

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 ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required