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Technical Analysis Glossary:
Targeted Amortization Class (TAC) bonds
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Targeted Amortization Class (TAC) bonds
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Definition: |
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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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