What are "Dollar Rolls"
I've looked up a bunch of different definitions of dollar rolls, and I've asked a bunch of the guys that I work with but no one has a great definition or explanation of what they are. So what are they, what do they do, why do you want them... yada yada.
I'm just looking to gain a basic understanding of them.
Thanks!!
Basic vegetarian egg roll at any Midtown dim sum joint.
Wit numba 5 you get dolla roll!
Nooooo man... it's a california roll without the default risk.
Here is a good/basic description of a dollar roll MBS transaction and why that market exists (compare this to the TBA market):
http://www.google.com/url?q=http://www.vaamllc.com/PDFs/Publications/Mo…
I don't know how to create a hyperlink.
first
then h ref
then =
then close it with another >
then write some shit then close it of with
followed immediately by /
then a
then >
again
why did i write all this gay shit, because drupal is a techie word for faggot
sorta like this.
Ah greatness! Thanks!!
dollar. roll.
AS I understand it...basically its the advantage/disadvantage of buying and holding a MBS in the front month vs financing the purchase of this front month MBS by selling a out month MBS. the price difference (the drop) is your cost of financing. If this is lower than your borrowing costs, then it makes sense to "roll".
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