To Be Announced - TBA


DEFINITION of 'To Be Announced - TBA'

A term used to describe a forward mortgage-backed securities trade. Pass-through securities issued by Freddie Mac , Fannie Mae and Ginnie Mae trade in the TBA market. The term TBA is derived from the fact that the actual mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made. The securities are "to be announced" 48 hours prior to the established trade settlement date.

BREAKING DOWN 'To Be Announced - TBA'

The settlement procedures of mortgage-backed securities TBA trades are established by the Bond Market Association. Each type of agency pass-through security is given a specific trade settlement date for each month. Trade counterparties are required to exchange pool information by 3:00 pm (EST) 48 hours prior to the established settlement date. Trades are allocated in $1 million lots.

  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. 48-Hour Rule

    A requirement that all pooled information regarding to-be-announced ...
  3. Ginnie Mae - Government National ...

    A U.S. government corporation within the U.S. Department of Housing ...
  4. Drop

    The difference in price between the front month and back month ...
  5. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
  6. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
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