A standard repo whose termination date matches the maturity date of the security (e.g., bond, note, etc.) In other words, the term of the repo coincides with the maturity of the collateral (the security) and the repurchase price (the price for which the collateral will be purchased back at that date) would be equal to the collateral’s proceeds, and hence the seller will not be affected by any fluctuations in the security’s value over the repo term (e.g., fluctuations in repos on T-bonds that may otherwise result in interest reductions for the seller).

Repo-to-maturity is typically in demand in a high or increasing interest rate environments (where debt security prices experience downside pressures).