What is the Full Form of TBA in Insurance?
The Full Form of TBA in Insurance is To Be Announced. This term is generally used when the specific details about an insurance policy, meeting, or event are not yet to be determined or disclosed and has to be offered at a later time. To be announced stems from the fact that the actual mortgage-backed securities that will be delivered to complete a TBA trade is not identified at the time the trade is executed.
Understanding To Be Announced:
The TBA serves as a contract to purchase or sell the MBS at a prescribed date, but it does not include any information with respect to the pool number, number of pools, or the exact amount that will be included in the transaction. TBA is used to facilitate trades in the MBS market and offers liquidity that allows mortgage lenders to hedge their pipelines.
Significance of TBA:
To be announced refers to other circumstances that do not involve the bond markets. The TBA is used interchangeably with ‘to be determined’ whenever there is upcoming information scheduled for release, but the exact date or time that has been set might appear as TBA.