In the Allocate TBA Shortsell/Turnaround panel, you can allocate a TBA as a turnaround.
In order for this transaction to perform correctly, open pools must exist in Eagle Accounting prior to this allocation. Enter the criteria to identify the Short position in the panel and then re-call the existing open pools into the panel (at the bottom of the screen). After you click Submit, the system closes the Short position by the amount in the TBA Par Allocated field, and closes the subsequent pools as well.
The Allocation TBA panels have edit checks in place to verify the validity of the user inputs, such as those to ensure that:
- The cost of the pools is within +/- .01% of the TBA Cost to be allocated
- The Coupon Rate of the underlying pool matches the Coupon Rate of the TBA security
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