Question: Why does the dollar roll market exist? Explain this using all participants in both the primary and secondary markets, from the prospective mortgagor to the
Why does the dollar roll market exist? Explain this using all participants in both the primary and secondary markets, from the prospective mortgagor to the dealer and investor in the secondary market. Pay attention to hedging motives of each participant, as well as their goals. Use textbox and tables/diagrams as needed.
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