Repurchase Agreement (RP)
Fubon Securities (seller) and investors agree on a transaction in which Fubon Securities sell bonds to investors, and will buy them back on the contract due date at an agreed price.
Reverse Repurchase Agreement (RS)
Investors (seller) and Fubon Securities agree on a transaction in which Fubon Securities buy bonds from investors, and will sell them back on the contract due date at an agreed price.
- Offer funding service to investors with short-term idle funds or high turnover.
- Offer tax mitigation service to investors in need (e.g. investors with an interest over NT$270,000 and pay high personal income tax)
- Offer funding service to companies and juristic persons (especially suitable for companies with net loss or tax reduction in the financial statement)
- Offer hedging service and guarantee earnings for individuals or juristic persons that prefer fixed income.
RP and RS are exempted from securities transaction tax and handling fees with a minimum requirement of NT$1 million only. Duration of the investment can be between 1 and 365 days, featuring the flexibility of a demand deposit. Investors can determine the duration based on their financial status. RP and RS are great opportunities for short-term investment. In addition, the transaction items in bond RPs are government bonds issued by the central government and municipality governments, which guarantee safety. Hence, your short-term bond investment is safe.