Targeted Amortization Class

Business, Legal & Accounting Glossary

Definition: Targeted Amortization Class


Targeted Amortization Class


Full Definition of Targeted Amortization Class


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.


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Definition Sources


Definitions for Targeted Amortization Class are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 17th November, 2021 | 0 Views.