About Allocating a TBA as a Turnaround

Owned by Nancy Cohn (Deactivated)
Last updated: May 17, 2024
1 min read

In the Allocate TBA (Turnaround) panel, you can allocate a TBA as a turnaround. For detailed information about the Allocate TBA (Turnaround) panel, see Book Trades for TBAs.

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 Pool Allocation Information pane at the bottom of the workspace. After you click Submit, the system closes the Short position by the amount in the TBA Par to be Allocated field, and closes the subsequent pools as well.

The Allocation TBA (Turnaround) panel has 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