Collateralised Mortgage Obligation (CMO)

Collateralised Mortgage Obligation (CMO)

Glossary
Banking

Collateralised Mortgage Obligation (CMO)

Collateralised Mortgage Obligations are a type of Mortgage-backed Security representing claims on the cash flows from underlying mortgage pools. CMOs segregate mortgage pool receivables into tranches with different risk characteristics and rights to the cash flows.

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