Amortization

Business / Accounting / Amortization: The depreciation (or repayment) of an (usually) intangible asset (eg. loan, mortgage) over a fixed period of time. Example: if a loan of 12,000 is amortized over 1 year with no interest, the monthly payments would be 1000 a month.

Effective-Interest Amortization

Business / Accounting / Effective-Interest Amortization: A method of systematically writing off a bond premium or discount that takes into consideration the time value of money and results in an equal rate of amortization for each period. MORE

Negative Amortization

Business / Finance / Negative Amortization: A loan repayment schedule in which the outstanding principal balance of the loan increases, rather than amortizing, because the scheduled monthly payments do not cover the full amount required to amor MORE

Amortization Factor

Business / Finance / Amortization Factor: The pool factor implied by the scheduled amortization assuming no prepayments. MORE

Planned Amortization Class (PAC)

Business / Finance / 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 tha MORE

Straight-Line Amortization

Business / Accounting / Straight-Line Amortization: A method of systematically writing off a bond discount or premium in equal amounts each period until maturity. MORE

Targeted Amortization Class (TAC) Bonds

Business / Finance / Targeted Amortization Class (TAC) Bonds: A monetary system under which countries pledge to maintain their exchange rates within a specific margin around agreed-upon, fixed central exchange rates. MORE

Links
Home
Glossary
Thesaurus