What is the meaning of drop?

drop is the difference between the prices in a dollar roll on the two settlement dates. The drop is expressed in 32nds. The drop is the price that the buyer of the dollar roll pays to the seller for the right to own the mortgage security and receive its cash flows during the term of the transaction.

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APABarry Goldsmith. (2010). drop. Retrieved September 20, 2026, from http://smartdefine.org/drop/definitions/1152470
ChicagoBarry Goldsmith. 2010. "drop" http://smartdefine.org/drop/definitions/1152470 (accessed September 20, 2026).
HarvardBarry Goldsmith 2010, drop, Smart Define, viewed 20 September, 2026, <http://smartdefine.org/drop/definitions/1152470>.
MLABarry Goldsmith. "drop" 21 October 2010. Web. 20 September 2026. <http://smartdefine.org/drop/definitions/1152470>
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