TBA trading and liquidity in the agency MBS market

James Vickery () and Joshua Wright

No 468, Staff Reports from Federal Reserve Bank of New York

Abstract: Most mortgages in the United States are securitized through the agency mortgage-backed-securities (MBS) market. These securities are generally traded on a ?to-be-announced,? or TBA, basis. This trading convention significantly improves agency MBS liquidity, leading to lower borrowing costs for households. Evaluation of potential reforms to the U.S. housing finance system should take into account the effects of those reforms on the operation of the TBA market.

Keywords: Financial market regulatory reform; Mortgages; Mortgage-backed securities; Housing - Finance; Liquidity (Economics) (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-fmk, nep-mst and nep-ure
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Citations: View citations in EconPapers (10)

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Journal Article: TBA trading and liquidity in the agency MBS market (2013)
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