Most new MBS pass-through bonds can be purchased on a TBA basis.Ī teaser rate is a below-market interest rate offered to borrowers of adjustable-rate loans during the initial period of some adjustable-rate mortgages. Instead of reducing a taxable yield by the amount of applicable taxes to compare it with a tax-free yield, the tax-free yield is increased by a hypothetical amount of income tax.Īcronym for to be announced. This is the most common way of comparing yields on taxable and tax-free investments. The yield that a tax-free investment would provide to an investor if the tax-free yield was 'grossed up' by the amount of taxes not paid. Short-term notes sold by a public entity that will be repaid from the proceeds of anticipated tax collections.

Short-term notes sold by a public entity that will be repaid from the proceeds of anticipated tax and/or fee collections. Tax and revenue anticipation notes (TRAN) TACs offer investors protection (but not immunity) from call risk but no protection from extension risk. For this reason, TACs can be viewed as half PACs. Unlike a planned amortization class (PAC) tranche, a TAC tranche is not protected from extension risk if prepayments are slower than expected. When prepayments exceed the targeted speed, the excess cash flow is diverted to other tranches in the CMO. A TAC tranche is structured to avoid prepayment volatility. Targeted amortization class (TAC) trancheīonds created in scheduled-pay CMO structures. Total assets minus intangible assets minus total liabilities. Terms used to describe the amount of owners' or stockholders' equity after deduction of intangible assets.

End lenders may be banks, insurance companies, pension funds, or others. The end, or permanent, lender commits to providing financing to the property owner that will pay off the construction loan. Legally binding commitments made by end lenders to construction lenders.

A B C D E F G H I J K L M N O P Q R S T U V W X Y ZĪ time period during which a borrower is permitted to draw down (i.e., request and receive advances from) the proceeds of a loan.

Define finance traunche