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.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
PAC bond Pacific Exchange (PX)