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 Call Price:
- Examples The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a specified call date collateralized mortgage obligation (cmo) definition.
- Definition Commercial Paper:
- Examples Short-term unsecured promissory notes issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less collateralized mortgage obligation (cmo) explain.
- Definition Capital Asset:
- Examples A long-term asset, such as land or a building, not purchased or sold in the normal course of business collateralized mortgage obligation (cmo) what is.
- Definition Continuous Random Variable:
- Examples A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable collateralized mortgage obligation (cmo) meaning.
- Definition Currency Overvaluation:
- Examples international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying collateralized mortgage obligation (cmo) abbreviation.
