What is a repurchase agreement? It is a way to get short term financing essentially by using high grade financial market securities as collateral. It is a way to temporarily sell short term assets. like receivables, to counterparties to get financing before buying them back. It is selling a security in the open market at one point and buying it back within 30 days, It is selling a security to a custodial bank and then buying it back from the market after a short period of time