PAC Bond

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PAC Bond

Stands for Planned Amortization Class bond. A tranche class offered by some CMOs that has a sinking fund schedule and an ability to make principal payments that are not subordinated to other classes.

PAC Bond

A collateralized mortgage obligation that seeks to protect investors from prepayment risk. PACs do this by setting a schedule of payments; if prepayments of the underlying mortgages exceed a certain rate, the life of the PAC is shortened. If they fall below a certain rate, the life of the tranche is extended. This helps protect investors in case the holders of the underlying mortgages do not pay off their mortgages as expected.

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PAC Planned Amortization Class Targeted Amortization Class			5% Balloon MBS 91 bp/5-yr 5-year FNMA Debenture 20 bp/5-yr 5-year 'AA' Industrial 60 bp/5-yr 5-year 'A' Industrial 70 bp/5-yr 5-year PAC Bond 91 bp/5-yr 15-year FNMA 9% Dwarf 96 bp/5-7 blend Market liquidity - The combination of heavy issuance and swift investor acceptance has spawned an active secondary market for balloon MBSs. Balloons on the rise by Mahood, Bruce / Mortgage Banking Two possible explanations for the recent deterioration of this relationship are the increased use of CMO PAC bonds to provide stable cash flows over a wide range of prepayment scenarios, and valuation problems with the implied volatility measure itself. MBS pricing: constantly evolving by Grupe, Michael R. / Mortgage Banking			owners and occupiers owners' equity ownership form ownership in severalty ownership rights to realty Ownership-Specific Advantages Oyra Ozalid P P & I P&I P&L P&S P-Coast P/B P/CF Ratio P/E P/E Effect P/E Ratio P/S P/S Ratio P2P PA PAB PAC PAC Bond Pac Man Defense Pac-Man Strategy Pacific Basin Economic Council Pacific Economic Cooperation Council Pacific Exchange Pacific Rim Pacific Stock Exchange package mortgage PACSSM PAD pad site Padrao ouro Pagadero Pagadero a la vista Pagafes Pagamento Pagamento a vista Pagamento alla consegna Pagamento antecipado Pagamento de juros Pagamento inicial Pagare Pagavel a ordem Pago Pago anticipado			PABSS Pabst Pabst Pabst Pabst Blue Ribbon Pabst, G W Pabst, G. W. Pabst, Georg Wilhelm PABT PABU PABUG pabular Pabulation pabulin Pabulous pabulum pabulum PABV PABVC PABWE PABX PABX PABX PAC PAC PAC PAC PAC PAC Pac a Mac PAC Bond PAC Bonds PAC CHEST Pac choi Pac choi PAC II Project Management System Pac Man Pac Man defense Pac Man defense Pac Man Strategy Pac Man Syndrome Pac-10 PAC-2 PAC-3 PAC-A-TACH Pac-Bell Stadium PAC-C PAC-D Pac-Man Pac-Man defence Pac-Man defense Pac-Man defense pac-man strategy pac-man strategy Pac-Man World Pac-Man World 2 PAC-U Pac. PAC3

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