A dollar roll is similar to a reverse repurchase agreement.
In order to answer this question it is necessary to consider how the repurchase agreement affects the transaction.
In a second action, the Fed lent $19 billion through reverse repurchase agreements.
While such repurchase agreements tend to be brief, usually overnight, affairs, they do have a great impact on the interest rate structure.
It does this through temporary repurchase agreements with these primary dealers.
This practice was a type of repurchase agreement that temporarily removed securities from the company's balance sheet.
Yesterday, the overnight offered repurchase agreement rate on most Government securities was 8.70 percent.
These complex investments, such as reverse repurchase agreements, increase the firm's reported leverage, but are relatively low risk.
At the end of last week overnight repurchase agreements were offered at 8.48 percent.
Through a repurchase agreement, the Fed seeks to push short-term rates down or prevent them from rising.