- collateralized mortgage obligation (CMO)A type of MBS created by dividing the rights to receive the principal and interest cash flows from an underlying pool of mortgages into separate classes or tiers. The tiers or classes are usually called tranches. In other words, it is a multiclass bond backed or collateralized by mortgage loans or mortgage pass-through securities. A given tranche is typically not redeemed until all bonds with earlier priority have been redeemed. By dividing the cash flows into one or more tranches with shorter terms, the risk resulting from the potential volatility from future changes in prevailing rates is shifted away from the shorter-term tranche or tranches and onto the longer-term tranches and the residual tranche. American Banker Glossary————————Central Moneymarkets Office Euroclear Clearing and Settlement glossary————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
* * *CMO CMO
* * *Collateralized Mortgage Obligations.A security sold to investors with collateral based on property mortgages. Cash flows from mortgages, and their maturity dates, vary widely. If they are pooled and CMOs are issued against their collective value, it becomes possible to calculate an overall cash flow and make predictable payments of interest.► See also Securitization.
Financial and business terms. 2012.
Look at other dictionaries:
CMO — /ˌsē ˌem ō/ n: collateralized mortgage obligation Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
CMO — is a three letter abbreviation that may stand for: Contents 1 Engineering 2 Entertainment 3 Health 4 Marketing 5 … Wikipedia
CMO — Die Abkürzung CMO steht für: Chief Marketing Officer Chief Medical Officer Cranio mandibuläre Osteopathie, Knochenerkrankung des Schädels bei gewissen Hunderassen Chi Mei Optoelectronics, taiwanesischer LCD Panel Hersteller Collateralized… … Deutsch Wikipedia
CMO — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sigles d’une seule lettre Sigles de deux lettres > Sigles de trois lettres Sigles de quatre lettres … Wikipédia en Français
CMO — Central Measurement and Signature Intelligence (MASINT) Organization; chief medical officer; chief military observer; civil military operations; collections management office(r); configuration management office … Military dictionary
CMO — … Википедия
CMO — Abbreviation for calculated mean organism. * * * cardiac minute output; Chief Medical Officer; comfort measures only; competitive medical organization; corticosterone methyloxidase * * * see Chief Medical Officer … Medical dictionary
CMO — Chief Medical Officer (Business » Positions) *** Collateralized Mortgage Obligation (Business » Stock Exchange) *** Collateralized Mortgage Obligation (Business » General) * Civil Military Operations (Governmental » Military) * Capstead Mortgage… … Abbreviations dictionary
CMO PA — Capstead Mortgage Corporation Preferred A (Business » NYSE Symbols) … Abbreviations dictionary
CMO PB — Capstead Mortgage Corporation Preferred B (Business » NYSE Symbols) … Abbreviations dictionary