HomeDefinitionsCompareDebt Planned amortization class (PAC)The financial definition for Planned amortization class (PAC):(1) The class of CMO that has the most stable cash flows and the lowest prepayment risk of any class of CMO Because of a stable cash flow, it is considered the least risky CMO (2) A CMO bond class that stipulates cash flow 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 prior claim to the cash flows before other CMO classes. Similarly, cash flows received by the trust in excess of the sinking fund requirement are also allocated to other bond classes. The prepayment experience of the PAC is therefore very stable over a wide range of prepayment experience. Similar MatchesAmortizationAmortizationThe repayment of a loan by installments. Amortization factorAmortization factorThe pool factor implied by the scheduled amortization assuming no prepayments. Earnings before interest, taxes, depreciation, and amortization (EBITDA)Earnings before interest, taxes, depreciation, and amortization (EBITDA)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs. Further SuggestionsLoan amortization scheduleNegative amortization Click to compare definitions of Planned amortization class (PAC) Click to view definitions beginning pl |