Difference between revisions of "TAC Tranche"

Latest revision as of 16:40, 1 December 2022

Definition

TAC Tranche. Targeted Amortization Class. This is related to a PAC tranche and has a payment schedule geared towards a specified Prepayment Speed (called the pricing speed).

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.

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 == Definition ==
-'''TAC Tranche'''. Targeted Amortization Class. This is related to a PAC tranche and has a payment schedule geared towards a specified prepayment speed (called the pricing speed). Agency CMO
+'''TAC Tranche'''. Targeted Amortization Class. This is related to a PAC tranche and has a payment schedule geared towards a specified [[Prepayment Speed]] (called the pricing speed).
-== Issues and Challenges ==
-The main difference between TAC and PAC is that the PAC schedule remains under a certain prepayment range (such as 50-150 PSA) while the TAC tranche is geared from the outset at a specified prepayment speed (such as 150 PSA). Math note: Originally specified in PSAin the examples. What is PSA? Review how we have modeled "Payment Speed" as a concept.
 == Disclaimer ==
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 [[Category:CMOs]]
+[[Category:Prepayment Risk]]
 {{#set: isDefinedBy | https://spec.edmcouncil.org/fibo/ontology/SEC/Debt/AssetBackedSecurities/CMOs/index-en.html }}
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