Collateralized mortgage obligation (CMO) - A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security.
Collateralized mortgage obligation (CMO) : a security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. the principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. related: mortgage pass-through security.
Collateralized mortgage obligation (CMO)