An integral part of state and local government investment programs, repurchase agreements are paired financial contracts between investors and dealers or banks. These simultaneous transactions, often simply referred to as “repos,” offer an alternative or supplement to money market mutual funds, other money market instruments or local government investment pools.

Dedicated short-term financing expertise

Transactions are fully collateralized, meaning they are secured with collateral whose market price exceeds the notional amount at the time of the engagement. (Since Synovus requires dealers to provide collateral valued at 102% of the cash investment, most transactions are over-collateralized.) The following general features can help you and your banker decide if a repo is right for you.

• Minimum investment is $250,000.
• Terms of the repo can be structured for overnight (the most common) or up to 180 days out.
• Daily principal amount of the repo can be increased or decreased to match your cash flow.
• Interest can be paid out daily or reinvested in the repo.

With few exceptions, U.S. Treasuries and agency mortgages are used as collateral. The repurchase agreement team can provide your bank contact with current rates, which change daily.

Talk to your banker

Your banker or advisor can provide more information and answer your questions.

How can we help?

Tell us about your short-term investment needs.