To-Be-Announced (TBA) Securities Data Glossary
Definitions of terms used in To-Be-Announced Securities data.
|Data field||Definition||Why we share this data|
|Coupon Rate||A coupon rate is the annual interest rate paid by the issuer to you when you hold a bond that you have purchased. These interest payments are generally made semiannually, although some bonds may pay interest more or less frequently. The coupon multiplied by the par value is the dollar amount the issuer pays annually. For instance, the issuer of a bond with a par value of $1,000 and a coupon rate of 4.5 percent ($45) would make two semiannual coupon payments of $22.50 each to each bondholder. Generally, the higher the coupon rate, the higher your return on investment but the greater the risk you incur. Coupon payments are paid until the maturity date, at which time the par value for each bond will be paid back by the issuer along with the final interest payment. If the coupon rate is zero percent, the bond is likely a zero coupon bond: Instead of the issuer paying interest payments, you buy the bond at a discount from the par value and are paid the par amount when the bond matures. 9.455%||So that investors can understand the potential bond returns. Learn more about Investing in Bonds.|
|Coupon Type||Coupon types can be fixed or floating rate typically paid annually or semiannually during the lifetime of the bond. In fixed-rate bonds, the coupon rate does not change during the life of the bond, whereas, in the case of floating rate bonds, the coupon rate is reset at certain times or periodically (for example, semi-annually) and the next coupon can be higher or lower than the previous one.||So that investors can understand the way payments are calculated for a bond.|
|CUSIP||A unique identifier used for US and Canadian registered stocks, US government and municipal bonds, exchange traded funds, and mutual funds assigned by the CUSIP committee. It is a nine-digit alphanumeric code. The issuer is identified in the first six characters, the next two positions identify the specific asset and the last digit is a check digit. Brokerage firms must have a daily license in place with Standard & Poor's CUSIP Bureau to acquire a full list of reportable bonds by CUSIP number.||It is a unique identifier for securities.|
|Issuing Agency||The agency issuing the mortgage-backed security, such as Fannie Mae or Freddie Mack.||So investors know which agency is issuing the security.|
A bond’s maturity date is the date the issuer is committed to paying you the par value of the bond, unless the bond is callable and is redeemed on an earlier date. At the maturity date, the issuer redeems each bond at the par amount. Matured bonds have already reached their maturity date and may have already been redeemed by the issuer. It is also possible that the security has not yet been redeemed for several reasons.
|So that investors know when the issuer committed to paying the value of the bond.|
Identifies the type of fixed income security, which may be:
|Product Subtype Asset Description||Product subcategory description.|
|Settlement Month||The month on which cash payments for purchases are due and for which accrued interest and price/yield relationships are computed. The market conventions for settlement dates are: Governments, Agencies, Mortgages: 1 business day after order, Corporates: 3 business days after order.||So investors understand how potential returns are computed.|
|Symbol||Security symbol assigned by FINRA for trade reporting purposes. The FINRA proprietary symbol is offered free of charge.||So that investors and markets have a free unique identifier for fixed income securities.|