| Collateralized Mortgage Obligation - CMO | |
 A type of mortgage backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds prospectus. |
|
 CMOs usually offer low returns because they are very low risk and sometimes backed by government securities. |
|
 Fannie Mae: MBS - Detailed information and articles on mortgage backed securities. Asset Allocation within Fixed Income - An investor's fixed-income portfolio can easily beat the average bond fund. Learn how and why! |
|
Related Terms
 |