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Yossarian

It is for 'Planned Amortization Class. (1) Of the COM class that has the lowest and most stable cash flow risk refund advance a category any CMO due to stable cash, it is considered the class of link CMO CMO (2) has less prone to error that stipulates cash-flow of contributions to a sinking fund. A PAC directs principal payments to the sinking fund on a priority basis, in accordance with a predetermined payment schedule, with a priority claim for cash flows before other CMO classes. Similarly, cash flows received by the trust, the sinking fund requirement are also allocated to other classes of binding. Experience of advance payment of the PAC is therefore very stable over a wide range of prepayment experience.

15:57, 1 November 2013