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Investing Glossary:
Targeted Amortization Class (TAC) bonds
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Targeted Amortization Class (TAC) bonds
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| Definition: |
| 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.
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