collateralized mortgage obligation
- A type of bond that is backed by a collection of home loans or other mortgage-related assets and is owed in accordance with the set repayment schedule of its classification rather than directly from the initial loans. This term can also be abbreviated as CMO
- The bank decided to invest in a collateralized mortgage obligation as a part of their diversified portfolio.
- Investors were drawn to the collateralized mortgage obligation due to its unique structure and potential for returns.
- The financial advisor explained the risks and benefits of investing in a collateralized mortgage obligation.
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