Sweep Repurchase Agreement (Repos)
Bank of Texas' Sweep Repo Service is an excellent way to fully utilize funds in excess of those needed to support daily activity. Repos or "repurchase agreements," allow your excess funds to be invested each night at a predetermined interest rate.
Repos are a sale of marketable securities from the bank to you, wherein the bank agrees to buy back the securities the next day at the same price plus interest. Since the bank collateralizes the Repos at 102%, the Repos take on characteristics of a collateralized overnight loan from you to the bank. Bank of Texas' Capital Markets group administers the funds for you and provides you with daily and monthly documentation on your Repo investments.
Benefits
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The "sweep" feature eliminates the need for your involvement in determining cash position and investment decisions.
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There is virtually no risk since each Repo is a highly liquid investment with a specified rate.
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The status of your automatic investment in Repos is available on a daily basis to you via NetConnect, our online information reporting system.
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