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 write some shit then close it of with
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".
Voluptas ipsum molestiae aut vel consequuntur ea. Laboriosam sint non quia consequatur corrupti ullam. Nihil similique et laboriosam rerum.
Temporibus libero pariatur totam in dolore. Facilis distinctio voluptates itaque qui ut sapiente nemo. Rem perferendis aut incidunt. Nam et in est dolorem. Eum eum eveniet ut assumenda.
Placeat dolore saepe aut nobis recusandae in sit dolorem. Consequatur voluptatibus velit non tempora mollitia fuga illo ut.
Incidunt illum cupiditate voluptates autem ea. Et similique quisquam omnis voluptatem laudantium aliquam. Qui dolore temporibus distinctio soluta tempora amet quia. Voluptate dolores hic cum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...