In the initial transaction of buyout repurchase, the bondholder "sells" the bond to the reverse repurchase party, and the ownership is transferred to the reverse repurchase party. In the initial transaction of pledged repo, the ownership of the bond is not transferred, and the reverse repo party only enjoys the pledge right.
2, the essential difference:
Pledged repo transaction means that the repurchase party (selling repurchase party and financing party) pledges the bonds to the reverse repurchase party (buying resale party and financing party) for financing, and both parties agree to return the funds calculated by the repurchase party to the reverse repurchase party at the agreed repurchase rate on a specific date in the future.
Extended data pledged repo is a short-term financing business in which both parties pledge their rights with bonds.
In the pledged repo transaction, when the fund lender (the repo party) (the transaction system indicates "lending" by entrustment) pledges the bonds to the fund lender for financing, both parties agree that the repo party will return the principal and the interest calculated at the agreed repo rate to the reverse repo party at a future date, and the reverse repo party will return the original pledged bonds to the repo party.
Buy-out bond repurchase transaction refers to a transaction in which the bondholder (repurchase party) sells bonds to the bondbuyer (reverse repurchase party), and both parties agree that the seller (repurchase party) will repurchase the same amount of bonds from the buyer (reverse repurchase party) at the agreed price at a certain date in the future.
Refer to Baidu Encyclopedia-Buy Out and Buy Back Baidu Encyclopedia-Pledge Buy Back