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Finance

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  • June 11, 2020
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Extendable Repo

A type of repo (repurchase agreement) which extends for longer periods than usual. It comes with an option to lengthen its maturity and hereby avail funding beyond its initial period. The two parties can keep getting the contract renewed, though it still can be ended with a specific time notice (such as 30-day notice). Examples of extensions include 15 and 18 months.

It is also known as an evergreen repo.


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