Repos provide more protection to the corporate investor than bank deposits and money market funds as they receive collateral in the form of securities. Traditionally repos have been used by banks and building societies to borrow money on a short term basis in the absence of unsecured money market funding which has almost dried up post global financial crisis. Whilst repos are currently used by few non-financial companies we believe their use will be a growing trend which reflects the increased use of collateralisation in the financial markets at large. One reason for corporates not currently using repos may be the lack of practical knowledge that exists. The objective of the ACT's guidance is to plug this gap. John Grout, ACT Policy & Technical Director said: "Corporates investing in repos is a sign of the times. Companies want more protection when investing their cash as the credit standing of banks declines." NOTES TO EDITORS Read the full ACT briefing note: Practical Steps to investing in Repos here. 'Repo' is the generic term for repurchase agreements (also known as 'classic repos') and sell/buy-backs. Repos are agreements to sell securities (usually bonds, gilts, treasuries or other government or tradeable securities) tied to an agreement to buy them back at a specified later date and price. A reverse repo is technically a pure way of describing a repo transaction from the investor’s perspective, namely the investment of cash and purchase of security tied to an agreement to sell it back later at a pre-determined date and price. For this briefing note we have used the generic term "Repo" to refer to reverse repos.