Variance rule

Definition:

Specifies the permitted minimum or maximum quantity of securities that can be delivered to satisfy a TBA trade. For Ginnie Mae, Fannie Mae, and Freddie Mac pass-through securities, the accepted variance is plus or minus 2.499999 % per million of the par value of the TBA quantity.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Property, Plant and Equipment (PP&E)

Tangible, long-lived assets that a company owns and uses in its operations, rather than simply holding them as an investment. This includes buildings, construction, facilities, machinery etc. and is... Read More

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