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.

Related information about targeted amortization class:

1. Targeted Amortization Class (TAC) Definition | Investopedia
   A type of credit derivative that is similar to a planned amortization class (PAC) in that it protects investors from prepayment; however, it is structured differently ...
    
2. Targeted Amortization Class financial definition of Targeted ...
   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 ...
    
3. Targeted Amortization Class - TAC: Definition from Answers.com
   bonds offered as a tranche class of some collateralized mortgage obligations ( CMOs). TACs are similar to pac bonds in that, unlike conventional CMO classes,
    
4. cmosched - Generate principal balance schedule for planned ...
   cmosched. Generate principal balance schedule for planned amortization class ( PAC) or targeted amortization class (TAC) bond ...
    
5. What is TARGETED AMORTIZATION CLASS (TAC) BOND ...
   Definition of TARGETED AMORTIZATION CLASS (TAC) BOND: A mortgage tranche with low risk repayment and price. This is accomplished by using a ...
    
6. Types of CMOs
   Targeted Amortization Class (TAC) Tranches. Like PAC tranches, Targeted Amortization Class (TAC) tranches also provide more cash-flow certainty and a fixed ...
    
7. Targeted Amortization Class (TAC) bonds Definition - NASDAQ.com
   Targeted Amortization Class (TAC) bonds: read the definition of Targeted Amortization Class (TAC) bonds and 8000+ other financial and investing terms in the ...
    
8. What is targeted amortization class? definition and meaning
   Definition of targeted amortization class: A type of collateralized mortgage ... A targeted amortization class (TAC) bond establishes a fixed repayment schedule.