which means "the details have not been decided".

To Be Announced (TBA) is an investment term typically used in the buying and selling of mortgage-backed securities (MBS). It refers to the securities not having all the details revealed yet. The TBA market provides liquidity and refinancing power for mortgage lenders to manage their long-term origination pipeline.

TBA trades are not typically executed with individual investors, but rather mortgage lenders and large institutions. This is due to the complexity of the transactions and the recognition of the potential risks associated.

TBA transactions provide a way for MBS investors to establish positions in MBS without having to first track down and purchase the underlying mortgages. When engaging in a TBA trade, all that is known is the coupon and maturity, as well as the pooled mortgage product being traded (ARM/fixed, etc.).

Due to the volatility of the TBA market, risk management is an essential component. TBA trades can come with higher risk due to the complexity of the market and the lack of information known about the underlying security. As such, investors participating in TBA trades should be prepared for the potential for higher returns, as well as the potential for higher losses.

Although the term ‘TBA’ has been around since the early days of mortgage-backed securities trading, it has grown in popularity with the emergence of secondary markets and refinancing, which makes it easier to trade in TBAs than it was in the early days.

In conclusion, while TBA trades can offer higher returns than traditional investments, it is important to recognize the considerable risk that can accompany them. For this reason, it is best that individual investors leave TBA transactions to those who understand the nuances of the market and the associated risks.