Archive for October, 2011
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Tuesday, October 4th, 2011Collateralized Mortgage Obligation (CMO)
Sunday, October 2nd, 2011A note or bond or tranches of notes and/or bonds that an SPV (q.v.) issues, in order to raise money to buy mortgage loans that serve as collateral for the note(s). Application: The CMO gets the bonds off the balance sheet of the CMO’s creator, thus eliminating credit exposure, in return for cash, and allows the [...]
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