The highest priority tranches of CMOs with junk bond status as their sole underlying assets were often rated as:

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The highest priority tranches of Collateralized Mortgage Obligations (CMOs) can be rated as investment-grade bonds even if their sole underlying assets have junk bond status. This is because the structuring of CMOs allows for the prioritization of cash flows to different tranches, with the highest priority tranches receiving payments first, thus reducing their risk and potentially elevating their credit rating.

The Highest Priority Tranches of CMOs with Junk Bond Status