Rolling (Finance) (Paperback)

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Rolling a contract is an investment concept meaning trading out of a standard contract and then buying the contract with next longest maturity, so as to maintain a position with constant maturity.One may roll a contract because one has a special preference for a specific maturity-for example, the five-year CDS rate of a given name-or because a given on-the-run security is more liquid than off-the-run securities.While holding US Treasuries, one may wish to hold only the most recently issued security of a given maturity, the so-called on-the-run security. Thus, if one has purchased the on-the-run 30-year treasury and a new 30-year auction occurs, one may sell the old treasury, which is now off-the-run, and purchase the new on-the-run treasury.