Prepayments Excel Workbook #1
a. i. Paste your chart of the cash flows of PT here. Use no more than 5 sentences to describe the
Cash Flows of PT Over Time
Supplemental Reading: Trading & Liquidity in the Agency MBS Market
MBS traded on TBA basis
o Identity of the MBS to be delivered it not specified exactly at the time of the trade.
(facilitates liquid forward market)
o 10-25bps of liquidity benefits, highe