For the buyer, a repo provides a safe investment opportunity with low-risk securities such as government bonds. Financial institutions engage in repo transactions to meet short-term cash needs. So, what is a repo transaction exactly? Repo/reverse repo transactions are investment instruments utilized by organizations seeking funding and those offering funds through the sale/purchase with a commitment to repurchase/resell financial instruments. A repo involves selling a security with a promise to repurchase it at the start value date, while a reverse repo involves buying a security with a promise to resell it at the end value date. Within the Debt Instruments Market, there are different repo/reverse repo markets where various securities are traded.