PAC Tranche or PAC Bond?

Business & Management
#1

The PAC tranche is also known as a PAC bond since it has many levels of protection. Although the terms bond and tranche are sometimes used interchangeably, especially in the context of CMOS, a bond originally referred to a single loan, a single debtor, and a single debt instrument, whereas tranches are slices sliced from a vast pool of unrelated debts to meet certain criteria.