Collateralized Mortgage Obligation (CMO)

Collateralized Mortgage Obligation (CMO)

Refer: mortgage pass-through security. Securities that are backed by a pass through pool, which encompasses classes of bondholders, maturities being different. The underlying security pool’s principal payments go toward repaying the bond on priority.

Related posts:

1. Mortgage Pass-Through Security
2. Principal Only (PO)
3. Mortgage Pool
4. Blanket Mortgage
5. Interest-Only Strip (IO)