planned amortization class (PAC) tranche is a REMIC security created to receive selected cash flows from a pool of underlying mortgages securing the REMIC. PAC tranches use a structure similar to a sinking fund to establish a fixed principal payment schedule. Created together with a companion or support tranche. PAC tranches are intended to have low call and low extension risk. Sometimes called controlled amortization bonds.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). planned amortization class (pac) tranche. Retrieved September 27, 2026, from http://smartdefine.org/planned_amortization_class_(pac)_tranche/definitions/1160644 |
| Chicago | Barry Goldsmith. 2010. "planned amortization class (pac) tranche" http://smartdefine.org/planned_amortization_class_(pac)_tranche/definitions/1160644 (accessed September 27, 2026). |
| Harvard | Barry Goldsmith 2010, planned amortization class (pac) tranche, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/planned_amortization_class_(pac)_tranche/definitions/1160644>. |
| MLA | Barry Goldsmith. "planned amortization class (pac) tranche" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/planned_amortization_class_(pac)_tranche/definitions/1160644> |