The Law Dictionary

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DOLLAR ROLL Definition & Legal Meaning

Definition & Citations:

A financial transaction involving the sale, and future repurchase, of MORTGAGEBACKED SECURITIES for cash. Through the exchange the selling party effectively borrows money from the purchasing party on a collateralized basis for a period that normally covers several days to several weeks. The dollar roll is essentially a form of mortgagebacked REPURCHASE AGREEMENT.


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