Collateralized mortgage obligations (CMOs)are sold in classes ("tranches")that increase the certainty of the timing of payments.

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CMOs are structured into different tranches, each with its own risk, reward, and maturity profile, to provide investors with varying degrees of certainty regarding the timing of payments. This structure allows for the distribution of different types of cash flow risks among various investors according to their risk appetite and investment needs.

Collateralized Mortgage Obligations (CMOs)are Sold in Classes ("Tranches")that Increase the Certainty