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.
Nearby TermsTarget zone arrangement Target zones Targeted Amortization Class (TAC) bonds Targeted registered offerings Targeted repurchase
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University