Bond pledge repurchase represents a liquidity management tool widely utilized among financial institutions. In this mechanism, the repo party (the seller in the repurchase transaction, or the fund borrower) pledges bonds to the reverse repo party (the buyer in the resale transaction, or the fund lender) to secure funds. The participating parties agree that on a specified future date, the repo party will return the funds to the reverse repo party, inclusive of an amount calculated at the agreed-upon repurchase rate. Pledge-style repurchase agreements (repos) represent the most widely used liquidity management tool among financial institutions.