COLLATERALISED MORTGAGE OBLIGATION

collateralised mortgage obligation: translation

collateralised mortgage obligations ( CMO)

CMOs package the mortgage payment stream from a portfolio of mortgages into several series of debt instruments which are prioritised in terms of their right to receive principal payments. In the most basic CMOs, each series must be repaid in full before any principal payments can be made to the holders of the next series. Exchange Handbook Glossary