Glossary of Municipal Securities Terms


Asset-backedĀ securities consisting of securitized interests in pools of mortgage loans. Typically, multiple classes or tranches 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.

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