collateralized mortgage obligations. A more complex MBS designed to lessen uncertainty in cash flow by not having a specific maturity date and sold on an 'average life' basis.
Collateralised Mortgaged Obligations
A multiclass bond backed by a pool of mortgage pass-through securities or mortgage loans. See "REMIC."
A multiple-class mortgage-backed security. The REMIC is synonymous with the CMO and, today, all CMOs are issued in the form of REMICs; however, the terms are often used interchangeably.
Collateralized Mortage Obligations
Collateralized Mortgage Obligation. A mortgage-backed bond that separates mortgage pools into short-, medium-, and long-term portions. Each class is paid a fixed rate of interest at regular intervals. An example of a CMO are Ginnie Maes.
Collateralized Mortgage Obligation. Bonds secured by mortgages and sold on a short-, medium- or long-term basis.
See Collateralized Mortgage Obligation.
Collateralized Mortgage Obligation. A sequential-pay security that is collateralized by mortgage pass-through securities or mortgage whole loans.
Collateralized Mortgage Obligation. A bond backed by multiple pools (also called tranches) of mortgage securities or loans.
COLLATERALIZED MORTGAGE OBLIGATION. A mortgage-backed security payable from mortgage repayments from a pool of mortgage loans. Typically, multiple classes of CMOs are issued secured by the same pool of mortgage loans. The mortgage repayments from the pool are applied to payments on the various classes of CMOs in a pre-determined order of priority, resulting in different rates of payments and different levels of risk with respect to the various classes of CMOs. See: PLANNED AMORTIZATION CLASS BOND.
Collateralized Mortgage Obligation: mortgage pool bond with different maturity class(tranches) that pay via payments and prepayments of principal and interest
COLLATERALIZED MORTGAGE OBLIGATION. A security collateralized with mortgages or mortgage-backed securities. Many CMOs backed by a U.S. government agency are rated AAA. Non-agency CMOs may be lower rated.
Collateralized mortgage obligation. Collecting Bank Collection
A type of bond having mortgages or mortgage-backed securities as collateral. Principal and interest payments from an underlying pool of mortgages are redirected to pay the CMO holders until the CMOs are retired. A single issue of CMOs contains two or more classes of bonds called tranches, each with a different length of maturity, providing a form of call protection to the holder of a CMO. A holder who wants to lock in a CMO investment for a specific length of time will buy into a tranche with a low risk of being retired early because the underlying mortgages are paid off early. Such low prepayment risk tranches are called planned amortization classes (PACs). Changes in prepayment rates in the underlying pool of mortgages are absorbed first by another tranche, so that the PAC remains unaffected by prepayment risk. CMOs generally pay principal and interest semiannually. CMO were first issued by the Federal Home Loan Mortgage Corporation (Freddie Mac) in June 1983.
Collateralized Mortgage Obligation. Mortgage backed security where payments on the underlying collateral are partitioned to provide for different maturity classes called tranches. Investors choose to buy one or more tranches with each tranche represent-ing a different maturity. Investors receive payments of interest or principal prioritized according to tranche.
Collateralized mortgage obligation. A mortgage-backed security collateralized by residential mortgages that are commonly guaranteed by government agencies and government-sponsored enterprises. (See mortgage-backed security.)
A mortgage-backed, investment-grade bond that separates mortgage pools into different maturity classes.
Collaterized Mortgage Obligation. A type of derivative.
Mortgage-backed bonds that are backed by a pool of mortgage pass-through securities or mortgage loans. These are separated into different maturity classes, called tranches.
Collateralized Mortgage Obligation. Debt obligations secured by pools of mortgage loans or by mortgage-backed securities. Most CMOs are multi-class pass-through bonds that pay in class order, e.g., class one must be paid in full before class two begins paying principal. Holders of each class of CMO receive semi-annual interest payments on the unpaid principal balance at the rate applicable to their class of bonds. The final class is usually an accrual class that pays ho principal or interest until all prior classes are paid in full.
Collateralized mortgage obligation; a bond issue in which cash flows from a pool of mortgage collateral have been split into multiple securities, called tranches; each tranche is a separate bond.
Consolidated Mortgage Obligation. 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.
COLLATERALIZED MORTGAGE OBLIGATION. A generic term for a security backed by real estate mortgages. CMO payment obligations are covered by interest and/or principal payments from a pool of mortgages.
Collateralized Mortgage Obligation. A pass-through security that aggregates a pool of mortgage-backed debt obligations. Homeowners' principal and interest payments pass from the originating bank or savings and loan through a government agency or investment bank, to investors, net of a loan-servicing fee payable to the originator.
Collateralized Mortgage Obligation. SECURITY whose cash flows equal the difference between the cash flows of the collateralizing ASSETS and the collateralized obligations of a securitized TRUST. Characteristics of CMO residuals vary greatly and can be extremely complex in nature.
Collateralized Mortgage Obligation. A multi-class bond backed by a pool of mortgage pass-through securities or mortgage loans.
Collateralized Mortgage Obligation. A type of security that attempts to customize the amount of prepayment risk associated with investments in mortgage-backed securities. The CMO creates bonds collateralized by a pool of mortgages or agency Pass-Through Securities. Each bond (called a Tranche) has a different rate of interest, repayment schedule, and priority level for receiving principal payments.
Debt obligations that are collateralized by and have payments linked to a pool of mortgages
Collateralised mortgage obbligation. Cash flow bond which comprises several classes of bond issued against a pool of mortgage assets.
collateralized mortgage obligation. A type of bond that is secured by and represents a share in a portfolio of mortgage investments.
Collateralized Mortgage Obligation. A security collateralized by a pool of mortgages or agency pass through securities. Each security has an interest rate, repayment schedule and priority claim for principal payments. Large issuers of CMO securities include the Federal Home Loan Mortgage Corporation (Freddie Mac), the Federal National Mortgage Association (FNMA), and the Government National Mortgage Association (GNMA). CMOs are subject to certain risks associated with interest rate changes and other factors, which may potentially affect the rates at which mortgages are repaid.
See Collateral Mortgage Obligation.
Collateralized Mortgage Obligation. Mortgage-backed pass-through security separates mortgage pools into separate classes called tranches. Interest on the outstanding principal balance of each class is paid at a specified coupon rate. Principal payments, unscheduled principal prepayments and interest are applied to each class according to a set of rules. The stated maturity of the class is the latest date on which the outstanding principal balance will be retired in full, assuming no prepayments.