Home > Term: Targeted Amortization Class (TAC) bonds
Targeted Amortization Class (TAC) bonds
Bonds offered as a tranche class of some CMOs, according to a sinking fund schedule. They differ from PAC bonds whose amortization is guaranteed as long as prepayments on the underlying mortgages do not exceed certain limits. A TAC's schedule is met at only one prepayment rate.
- Del af tale: noun
- Branche/domæne: Financial services
- Category: General Finance
- Company: Bloomberg
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