TBA market
Fixed IncomeDefinition
To-Be-Announced market for agency MBS. Forward-trading mechanism where buyers and sellers agree on price now but settle with specific pools later. Creates massive liquidity for MBS.
~$300B daily trading volume — second only to Treasuries in fixed-income markets. Key for mortgage originators to hedge pipelines (lock in rates while loans are being originated).
~$300B daily trading volume — second only to Treasuries in fixed-income markets. Key for mortgage originators to hedge pipelines (lock in rates while loans are being originated).