In the TBA (To Be Announced) market, agency-issued and agency-guaranteed RMBS's are traded on a forward settlement basis. The primary six parameters of such a trade specify issuer, coupon, maturity, price, face value, and settlement date. Many other rules and parameters govern what pools are actually TBA eligible. The true identity of the pools to be delivered are left unspecified, or un-announced, until 48 hours prior to the settlement date (i.e. when the money changes hands). The vast majority of Agency RMBS are currently traded in the TBA market.

While the nine digits in a regular CUSIP uniquely identify the bond issuer (6 digits), bond maturity (2 digits), and check digit (1 digit), TBA CUSIPs, via an algorithm represent the product code (2 digits), type of mortgage (1 digit), coupon (2 digits), maturity (1 digit), settlement month (1 digit), and check digit (1 digit).

Use our free tool to generate a TBA Cusip by entering the issuer/type, coupon code, maturity, and settlement month using the form below.