A form of repurchase agreement in which an investor sells a mortgage-backed security during one period and repurchases it in a subsequent period. While the investor gives up access to the principal and interest on the loan that is sold, the proceeds from the sale of the security could be reinvested and then used to repurchase the security later. The investor hopes that the difference between the original price and the repurchase price ("the drop") is high. A large difference between the original price and the repurchase price results in the security being considered "on special".
Related information about dollar roll:
- Dollar roll - Wikipedia, the free encyclopedia
A dollar roll is similar to a reverse repurchase agreement. The investor sells a mortgage-backed security for settlement on one date and buys it back for ...
- Dollar Roll Definition | Investopedia
A type of repurchase transaction in the mortgage pass-through securities market in which the buy side trade counterparty of a "to be announced" (TBA) trade ...
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Aug 24, 2008 ... A dollar roll is analogous to a repo, but there are important differences: (1) the party borrowing the securities in a dollar roll does not have to ...
- What Is a Dollar Roll?
Dollar rolls are strategies that involve the repurchase of some type of mortgage- backed security. To a degree, a dollar roll is very similar to a repurchase ...
- What is dollar roll? definition and meaning
Definition of dollar roll: A form of repurchase agreement in which an investor sells a mortgage-backed security during one period and repurchases it in a ...
- MBS Market Technical Factors: Dollar Rolls
Feb 24, 2012 ... Another set of technical factors that impact secondary managers are in the dollar roll market that we discussed a few weeks ago. Dollar rolls ...
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Jan 30, 2012 ... While it seems esoteric, secondary markets people are implicitly considering the dollar roll market every time they make the judgment to sell ...
- Dollar roll: Definition from Answers.com
Dollar Roll Sale of a Mortgage-Backed Security to a dealer, with an agreement to repurchase a substantially identical security at a future date and at.