What is reverse repurchase of national debt?
To put it simply, when financial institutions are short of money, they will take the national debt they bought as collateral and borrow money from retail investors. After the borrowed money expires, repay the principal and interest and recover the national debt. The intermediary is the stock exchange. This loan method secured by national debt is the reverse repurchase of national debt. In fact,
It is essentially a short-term loan.
The reverse repurchase of government bonds with government bonds as collateral is equivalent to buying the country's IOUs, and the risk is similar to that of government bonds. Because the whole lending process and capital flow are carried out under the supervision of exchanges and banks, its security is very high, and the risk is even lower than that of Yu 'ebao's money fund.
What is the expected return of reverse repurchase of national debt?
Under normal circumstances, the annualized expected return of reverse repurchase of treasury bonds fluctuates in the range of 2%~4%, sometimes less than the expected return of the money fund. However, when the market is particularly short of money, the interest rate of reverse repurchase of government bonds will go up. When will you be short of money?
For example, at the end of the quarter, the end of the year and holidays, banks and other financial institutions often face performance appraisal and often borrow money for emergencies, so the reverse repo rate of government bonds is higher than usual. At the end of last year, for example, the two-day reverse repo rate of government bonds reached 14%, which was equivalent to lending 654.38+million yuan in two days, earning 77 yuan, and the expected income was six or seven times that of Yu 'ebao.
How to buy reverse repurchase of national debt
Yes 1 day, 2 days, 3 days, 4 days, 7 days, 14 days, 28 days, etc. It is generally best to buy 1 day, and the expected rate of return is often higher. Buying treasury bonds for reverse repurchase requires opening a stock account. Enter the code of each investment product in the brokerage software, and choosing to sell means that you have lent the money. The next thing to do is to get back the principal and interest when it expires.
Summary: The above is an introduction to the reverse repurchase of government bonds. I believe that if there is spare money in the stock account, you may wish to pay attention to the money-making opportunities of reverse repurchase of government bonds in a special period.