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SOFE AFE Exam - Topic 1 Question 96 Discussion

Posted by Dylan on Mar 09, 2025 at 05:30 AM

The two most common types of dollar rolls are:

Suggested Answer: A

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31 comments · newest first
DE
Denna 10 months ago
I agree, A seems right!
JO
Jonelle 10 months ago
Fixed-coupon and yield-maintenance are the classics!
KA
Katheryn 10 months ago
I thought it was B?
SO
Solange 10 months ago
Wait, are you sure about that?
KA
Kanisha 11 months ago
A is definitely one of them!
EM
Emeline 11 months ago
I thought fixed-coupon was a common type, but I can't remember if it's with accounting or yield-maintenance agreements.
DE
Deeanna 11 months ago
I feel like variable-coupon could be part of the answer, but I can't recall if it's paired with yield-maintenance or something else.
TO
Tonette 11 months ago
I remember practicing a question similar to this one, and I think yield-maintenance agreements were definitely mentioned.
HI
Hillary 12 months ago
I think the answer might be A, but I'm not entirely sure about the terms used in dollar rolls.
IS
Isabella 12 months ago
I'm a bit confused by the wording of this question. The options seem to be getting at some technical details of dollar roll agreements that I'm not fully comfortable with. I'll make an educated guess, but I'm not 100% confident in my answer.
FE
Fernanda 12 months ago
Okay, let me think this through step-by-step. Dollar rolls involve the sale and repurchase of mortgage-backed securities, right? And the two main types are based on whether the coupon is fixed or variable, and whether the yield is maintained or not. I think option A sounds right, but I'll double-check my notes to be sure.
WI
Willow 1 year ago
Hmm, I'm not entirely sure about this one. I know dollar rolls have to do with fixed-income securities, but I'm not familiar with the specific terminology of "fixed-coupon" and "yield-maintenance" agreements. I'll have to think this through carefully.
DE
Denny 1 year ago
This looks like a straightforward question about the types of dollar rolls. I'm pretty confident I know the answer, so I'll just go with option A.
AR
Ardella 2 years ago
B) Variable-coupon and yield-maintenance agreements. Easy peasy, lemon squeezy. This one's a no-brainer.
SY
Sylvia 1 year ago
↳ replying to Ardella
Variable-coupon agreements can be more flexible depending on market conditions.
JA
Jacquelyne 1 year ago
↳ replying to Ardella
It's important to understand the differences between fixed-coupon and variable-coupon agreements.
IZ
Izetta 1 year ago
↳ replying to Ardella
I agree, variable-coupon and yield-maintenance agreements are the most common types of dollar rolls.
FE
Fernanda 2 years ago
I think Talia might be right, variable-coupon and yield-maintenance agreements sound familiar.
TA
Talia 2 years ago
I'm not sure, but I think it's B) Variable-coupon and yield-maintenance agreements.
EL
Elenore 2 years ago
Ah, the age-old question of dollar rolls. My grandpappy used to say, 'If it ain't fixed-coupon and yield-maintenance, it ain't worth a dime.'
MA
Marylou 2 years ago
Fixed-coupon and Accounting agreements? What is this, an accounting exam? I thought we were talking dollars and rolls, not debits and credits.
AL
Alva 2 years ago
Variable-coupon and Principal agreements? Nah, that's just asking for trouble. Gotta stick with the classics, you know?
VA
Vallie 1 year ago
↳ replying to Alva
C) Fixed-coupon and Accounting agreements
BE
Bethanie 1 year ago
↳ replying to Alva
B) Variable-coupon and yield-maintenance agreements
FA
Fausto 1 year ago
↳ replying to Alva
A) Fixed-coupon and yield-maintenance agreements
RE
Reid 2 years ago
A fixed-coupon and yield-maintenance agreement sounds like the way to go. I can almost smell the profit potential from here!
TA
Tarra 2 years ago
↳ replying to Reid
Have you had success with those types of dollar rolls before?
GA
Gaynell 2 years ago
↳ replying to Reid
I agree, they offer good profit potential.
PH
Phuong 2 years ago
↳ replying to Reid
Fixed-coupon and yield-maintenance agreements are indeed popular choices.
VA
Vallie 2 years ago
I agree with Lisbeth, fixed-coupon and yield-maintenance agreements make sense.
LI
Lisbeth 2 years ago
I think the answer is A) Fixed-coupon and yield-maintenance agreements.
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