Repo is basically short-term lending that is collateralized against a bond. The simplest is against a government bond. You have a government bond and you give it to me for two days. I give you cash. You pay me interest, but you are protected.
October 27th, 2009 / 12:40 p.m.
Governor of the Bank of Canada
Repo is basically short-term lending that is collateralized against a bond. The simplest is against a government bond. You have a government bond and you give it to me for two days. I give you cash. You pay me interest, but you are protected.
See context to find out what was said next.