What is TREPS? Why do Mutual Funds invest in them?

May 21 TREPS, short for "Treasury Bills Repurchase," is a financial instrument widely used in the money market. In simple terms, it represents a short-term borrowing and lending arrangement between two parties – a borrower and a lender.   In a TREPS transaction, the borrower, often a mutual fund, pledges government securities, such as Treasury Bills, with the lender (usually a bank or a financial institution) to borrow funds.   The lender provides the funds to the borrower, and in return, the borrower agrees to...