Click here to join our mailing list to receive the latest news and updates as they happen. Unsubscribe any time.

Prime-BA Spread

The "prime-BA spread" is simply prime rate minus the 30-day bankers’ acceptance yield. 

In raw terms, it represents gross lender margins on variable-rate mortgages.

From this spread, lenders have to pay liquidity/risk premiums (when raising lending capital in the credit markets), customer acquisition costs, overhead, salaries, etc. The remainder is profit.