• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 10. Real Estate and Other Invest... > Collaterized Mortgage Obligations

Collaterized Mortgage Obligations

Remember our discussion in Chapter 8 of zero coupon bonds for which you separate the coupon from the bond? Collaterized mortgage obligations (CMOs) are similar in that they do the same thing to pools of mortgage-backed securities, creating what are called tranches (French for slices). CMOs are generally purchased by large institutions that buy the best slices, leaving the less desirable slice for you and me. Let's eat someplace else.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint