About Allocating a TBA Buy
- Nancy Cohn (Deactivated)
After the underlying pools become available for allocation of an open Long TBA position, you can use the Allocate TBA Buy panel in the Book Trade tool to perform the allocation task. For detailed information, see Book Trades for TBAs.
You must identify the TBA lot that you want to allocate in the panel and then can enter the subsequent pools in the pane at the bottom of the panel. Eagle Accounting shares the Trade Date, Settlement Date, and open unit Price of the TBA transaction with the underlying pools, so you need only input the unique fields for the underlying pool.
The allocation 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 must be within +/- .01% of the TBA Cost to be allocated
The Coupon Rate of the underlying pool matches the Coupon Rate of the TBA security
After you click Submit, the system closes the TBA by the amount that you entered in the TBA Par to be Allocated field, and opens the subsequent pools.
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