Alphabet Soup

A number of acronyms have been developed to shorten references to commonly used entities. Some of them are explained here.

ARM
Adjustable Rate Mortgage
CMT
Constant Maturity Treasury, An index of set maturity Treasury issues.
COFI
11th District Cost of Funds Index
FHFB
Federal Housing Finance Board
FHLMC
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac.
FNMA
Federal National Mortgage Association, commonly known as Fannie Mae.
GSE
Government Sponsored Enterprise, Organizations such as Fannie Mae and Freddie Mac that have some degree of government sponsorship.
IO
Interest Only, form of hybrid Arm that requires interest payments only during initial interval
LIBOR
London Interbank Offered Rate
OAD
Option Adjusted Durations
OAS
Option Adjusted Spread
OFHEO
Office of Federal Housing Enterprise Oversight
TBA
To Be Announced, actual GSE pools delivered to settle trades.

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