TARGETED AMORTIZATION CLASS (TAC) BONDS


Meaning of TARGETED AMORTIZATION CLASS (TAC) BONDS in English

Bonds offered as a tranche class of some CMO's , based on a sinking-fund schedule. However, they differ from PAC bonds in that whereas a PAC's amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits, a TAC's schedule will be met at only one prepayment rate.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.