Finance Junkie
Posts: 205
Joined: Mon Feb 04, 2013 3:35 pm


Postby » Mon Aug 04, 2014 7:36 am

Hi guys i have a doubt in chapter 15 overview of the MBS mkt
In that i am unable to understand dollar roll market.. can anyone please explain

Finance Junkie
Posts: 704
Joined: Wed Apr 09, 2014 6:28 am


Postby edupristine » Thu Aug 07, 2014 2:16 pm

When a MBS market maker wants to roll out his position at the point of expiration they will do it by Dollar roll.
By Dollar roll they can exchange the positions and there is some differences in price called drop paid by liable.

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