Preserve principal and generate interest income through secured, overnight investments.
Investors who have minimal tolerance for loss of principal and who are seeking interest rather than dividend income can benefit from Silicon Valley Bank’s Reverse Repurchase Agreement Program. Designed for our venture capital clients, it is a convenient alternative for clients seeking a conservative investment vehicle that offers interest income.
Through this program, you can enter into a collateralized or secured overnight investment by investing short-term funds. The reverse repurchase investor buys securities from a counter party that simultaneously commits to repurchase the securities at a future date at a prearranged rate. Through the repurchase, the investor receives the original proceeds plus interest.
Operating cash, surplus funds and targeted-purpose funds typically fund Repo transactions. You may choose either agency or treasury securities as Repo collateral.
Contact one of SVB’s expert advisors today to learn more about how the Reverse Repurchase Agreement Program can help your business securely generate income for your growth.
Repurchase transactions are offered through Silicon Valley Bank and are not covered by SIPC or FDIC insured, are not deposits or other obligations of Silicon Valley Bank, and may lose value.