Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
Closing a position in the expiring series and opening the same exposure in the next one, rather than settling it.
NSE publishes the percentage and Indian commentary quotes it every month without the one thing that gives it meaning — whether it was the longs or the shorts who rolled. Read it against the stock’s own three-month average, and beside the cost of carry.
The risk that short-dated borrowing cannot be reissued when it matures, even though the borrower is solvent and the underlying assets are unimpaired.
Fifteen years of ninety-day paper is about sixty separate lending decisions. The exposure is to the worst of them rather than the average, and the cause of a bad week is often nothing to do with the borrower.