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dollar roll

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Financial Dictionary

Dollar Roll

A special type of repurchase agreement in which the security, transferred to the investor as collateral, is a mortgage-backed security. The investor who sells the security gives up the cash flows during the roll period, but has use of the proceeds.

Investopedia Commentary

It's similar to a reverse repurchase agreement.

Related Links

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See also: Mortgage Backed Security, Reverse Repurchase Agreement

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