Meaning 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
More terms such as Collateralized mortgage obligation (CMO) in Dictionary C.
- Definition Corporate Processing Float:
- Examples The time that elapses between receipt of payment from a customer and the deposit of the customer's check in the firm's bank account; the time required to process customer payments collateralized mortgage obligation (cmo) definition.
- Definition Closing Quote:
- Examples The last bid and offer prices of a particular stock at the close of a day's trading session on an exchange collateralized mortgage obligation (cmo) explain.
- Definition Crawling Peg:
- Examples for revising the exchange rate. It involves establishing a par value around which the rate can vary up to a given percent. The par value is revised regularly according to a formula determined by the collateralized mortgage obligation (cmo) what is.
- Definition Convertibility:
- Examples The ability to exchange a currency without government restrictions or controls collateralized mortgage obligation (cmo) meaning.
- Definition Catastrophe Call:
- Examples Early redemption of a municipal revenue bond because a catastrophe has destroyed the project that provided the revenue source backing the bond collateralized mortgage obligation (cmo) abbreviation.
