Dollar Rolls definition
Dollar Rolls means a transaction under which one party (the “Seller”) agrees to (i) sell a mortgage-backed security (“MBS”) to another party (the “Buyer”) and (ii) repurchase such MBS from the Buyer at later date and typically at a lower price.
Examples of Dollar Rolls in a sentence
Reverse Repurchase Agreements, Dollar Rolls and Other Borrowings.
Dollar Rolls Risk: Dollar rolls transactions may be subject to the risk that the market value of securities sold to the counterparty declines below the repurchase price, the counterparty defaults on its obligations, or the portfolio turnover rate increases because of these transactions.