Join Mailing List

For latest news and information about Treasury and Financial Markets, enter your details below:

Buy sell back transactions

Print Preview Send to a Friend Share

Published: 19th February 2010 by William Webster

A buy/sell back is a spot sale of a security with a simultaneous forward purchase. Buy/sell backs are sometimes used instead of repo transactions. The main difference between the two structures is that in a repo, the repo rate is used to determine the sum of money that is repaid at maturity. In a buy/sell back the deal is quoted as a spot and forward security price. The actual collateral amounts and cash payments are the same in both structures. Here is an example:

Buy the full article now for just £1.95

If you have already purchased this article, login to view it.