Bond pledge repurchase refers to a liquidity management tool widely used between financial institutions, in which the repo party (the seller in the repurchase, or the fund borrower) pledges bonds to the reverse repo party (the buyer in the resale, or the fund lender) to obtain funds. The parties agree that on a specified future date, the repo party will return the funds to the reverse repo party, including an amount calculated at the agreed-upon repurchase rate. Pledge-style repurchase agreements (repos) are the most widely used liquidity management tool among financial institutions.