Short for Targeted Amortization Class bond, a mortgage-backed bond that may be offered in a collateralized mortgage obligation. A TAC bond is similar to a PAC bond, but differs in its structure and payment. A TAC bond is less stable, and protects against a rise in the prepayment rate, but not against a fall in the prepayment rate. It schedule will be met only at one given prepayment rate.
Related information about TAC bond:
- What is TAC bond? definition and meaning
Definition of TAC bond: Short for Targeted Amortization Class bond, ... A TAC bond is similar to a PAC bond, but differs in its structure and payment. A TAC bond ...
- TAC Bonds - Financial Dictionary - The Free Dictionary
TAC Bond · Targeted Amortization Class · Targeted Amortization Class Bond. The yields on TAC bonds are typically higher than yields on PAC tranches but ...
- PAC Bond
PAC II bond · PAC III bond · prepayment protection band · subordinate PAC bond · super PAC bond · support bond · targeted amortization class (TAC) bond ...
- What is TARGETED AMORTIZATION CLASS (TAC) BOND ...
Definition of TARGETED AMORTIZATION CLASS (TAC) BOND: A mortgage tranche with low risk repayment and price. This is accomplished by using a ...
- CMO Bonds - American Investment Training
A TAC Bond also has scheduled cash flows. However, TACs are designed to remain stable at one PSA speed and faster. TAC Bonds are created to protect ...
- Collateralized mortgage obligation - Wikipedia, the free encyclopedia
This type of tranching has a bond (often called a PAC or TAC bond) which has even less uncertainty than a sequential bond by receiving prepayments according ...
- Targeted Amortization Class - TAC: Definition from Answers.com
At other prepayment rates, the TAC will experience either excesses or shortfalls. A TAC bond provides more cash flow stability than a regular CMO class but less ...
- Bondtac Technologies Incorporated
Home; About. Company Profile · Research & Development · Manufacturing · Facility · Company Video · Products. Waterproof Membranes. BondTAC™ S-1430 ...