POs IOs

CFA Level II
#1

What is the difference between pool basis and TBA when talking about IOs and POs? or at least can someone point out to me in what page I can find it thank you

#2

what is pool basis and TBA? I can explain IOs and POs if that is what you’re asking

#3

you find a quick mention on page 398 in fixed income as far as i know, pool basis is knowing that the loans in the pool, knowing their maturity, principle, interest… TBA basis meens that the specific loans are not known yet, ie we do not know it is gona have @andrewUNH loan or @gulfcfa loan, but we know it will have loans of a certain criteria

#4

thanks gulf

#5

thanks gulf I think the pool basis is also what percent of outstanding principal the loan has left

#6

“I think the pool basis is also what percent of outstanding principal the loan has left” i have never seen such mention, if you find something in the curriculum that talks about TBA and pool basis other than page 398 please share it