Business, Legal & Accounting Glossary
A type of collateralized mortgage obligation intended to protect investors from prepayment risk. A targeted amortization class (TAC) bond establishes a fixed repayment schedule. If a borrower prepays the underlying mortgage, the life of the bond is shortened but the interest rate is not changed.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Targeted Amortization Class are sourced/syndicated and enhanced from:
This glossary post was last updated: 17th November, 2021 | 0 Views.