COLLATERALIZED MORTGAGE OBLIGATION (C.M.O.)


Meaning of COLLATERALIZED MORTGAGE OBLIGATION (C.M.O.) in English

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 .

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.