A dollar roll is similar to a reverse repurchase agreement and provides a form of collateralized short-term financing with mortgage-backed securities comprising the collateral. The investor sells a mortgage-backed security for settlement on one date and buys it back for settlement at a later date.
A dollar roll is similar to a reverse repurchase agreement and provides a form of collateralized short-term financing with mortgage-backed securities comprising the collateral. The investor sells a mortgage-backed security for settlement on one date and buys it back for settlement at a later date.
Source: Wikipedia "Dollar roll" · CC BY-SA 4.0
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