planned amortization class (PAC)

planned amortization class (PAC) definition - business

planned amortization class (PAC)

A type of collateralized mortgage obligation with a predetermined principal paydown schedule that provides investors with greater cash-flow certainty and a more specific average life. The greater payment certainty comes at the expense of a lower yield to investors.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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