Collateralized mortgage obligation (CMO)

Definition: [crh] A security backed by a pool of pass-through rates , structured so that there are several classes of Definition: bondholders with varying maturities, called tranches. The principal payments fromDefinition: the underlying pool of pass-through securities are used to retire the bonds on a priorityDefinition: basis as specified in the prospectus. Related: mortgage pass-through security.

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