A repo is in essence a collateralized

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A repo, or repurchase agreement, is essentially a form of short-term borrowing for dealers in government securities. In the arrangement, the dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. It is similar to a Fed funds loan, which is an unsecured loan of reserves at the Federal Reserve to another bank that needs overnight funds to meet reserve requirements. Both involve short-term borrowing, but repos are collateralized, typically by government securities, whereas Fed funds loans are unsecured.

A Repo Is in Essence a Collateralized