SVB Reverse Repurchase Agreement Program 

Silicon Valley Bank’s Reverse Repurchase Agreement Program allows you to enter into secured overnight investments. A reverse repurchase agreement (repo) is a collateralized or secured means of 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. The repurchase results in the investor receiving the original proceeds plus interest. At Silicon Valley Bank we offer you the option to choose from agency or treasury securities as collateral for your repo transactions.  

The repo product was designed for our venture capital clients, but is generally suitable for investors with minimal tolerance for loss of principal who are seeking interest income, rather than dividend income. Typically, operating cash, surplus funds, and targeted-purpose funds are appropriate source of funds for repo transactions.