Exchange Currency

PAC tranche

A planned amortization class whereby a REMIC security is created in order to receive cash flows from a pool of underlying mortgages that secure the REMIC. These tranches have a structure that is similar to that of a sinking fund in order to set up a fixed schedule of payments.

Related information about PAC tranche:
  1. Planned Amortization Class (PAC) Tranche Definition | Investopedia
    A class of tranche in a planned amortization class (PAC) bond that receives a primary payment schedule. As long as the actual prepayment rate is between a ...
     
  2. The Various Types of CMOs
    With a PAC tranche, the yield, average life, and lockout periods estimated at the time of investment are more likely to remain stable over the life of the security.
     
  3. Collateralized mortgage obligation - Wikipedia, the free encyclopedia
    The PAC tranche will receive whichever rate is lower, so it will change ... For example a $100mm PAC tranche off 6% collateral with a 6% coupon ('6 off 6' or ...
     
  4. What is PAC tranche? definition and meaning
    Definition of PAC tranche: A planned amortization class whereby a REMIC security is created in order to receive cash flows from a pool of underlying mortgages ...
     
  5. Planned Amortization Class (PAC) Tranche: Definition from Answers ...
    Planned Amortization Class (PAC) Tranche A class of tranche in a planned amortization class (PAC) bond that receives a primary payment schedule.
     
  6. Collateralized mortgage obligations (CMOs) - Wells Fargo Advisors
    A PAC tranche uses something like a sinking fund in a fixed principal-payment ... away from the PAC tranche and toward a “companion” or “support” tranche.
     
  7. ANSWERS TO END OF CHAPTER QUESTION
    with a WAM of 340 months or (ii) a PAC tranche of a Freddie Mac CMO issue ... has been mitigated by the creation of a planned amortization class (PAC) tranche ...
     
  8. REMIC Structures - Ginnie Mae: For Investors
    A useful analytical tool for assessing the stability of a PAC tranche is the "effective band", which measures the range of constant prepayment speeds that will ...