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hi Im Doug Carroll for insiders guide to finance that come here today with a brief presentation for you on repos or repurchase agreements as theyre sometimes more formally known repos are a really important financial instrument that make great contributions to the efficient functioning of the fixed income markets in particular in the u.s. theyre widely used financing vehicles especially in the US Treasury and agency mortgage-backed pass-through securities market now note what I said as part of that description I describe them as a financing tool so despite the fact that repos are oftentimes presented as money market instruments and they are I dont need to say theyre not in reality repos our financing techniques that are masquerading as a couple of pair trades but before we get way into the substance lets first get a handle on the structure of the transaction so my subsequent explanation of the substance of whats really transpiring makes more sense so whats a repurchase agreeme