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.
Link to This DefinitionDid you find this definition of DOLLAR ROLL helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary