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PAC
(redirected from pack)

   Also found in: Dictionary/thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia 0.01 sec.
PAC (1)

PAC (2)

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.

PAC


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