Financial Risk Manager Part 1
Get started today
Ultimate access to all questions.
Which of the following accurately describes a characteristic of to-be-announced (TBA) trading in mortgage-backed securities (MBS)?
Which of the following accurately describes a characteristic of to-be-announced (TBA) trading in mortgage-backed securities (MBS)?
Exam-Like
A
TBAs involve agreements on specific pools of mortgages at predetermined prices.
B
TBAs allow sellers to choose the exact mortgage pools to deliver at settlement.
C
TBAs are forward contracts where buyers and sellers agree on issuer, maturity, coupon, price, par value, and settlement month.
Comments
Loading comments...