With a sequential pay CMO, there is more interest rate risk with an "A"tranche than with a "D"tranche.

Name: With a sequential pay CMO, there is more interest rate risk with an "A"tranche than with a "D"tranche.
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In a sequential pay CMO, the "A" tranche is paid off first, reducing its interest rate risk compared to later tranches like "D," which are paid after and thus have more exposure to interest rate changes over time.

With a Sequential Pay CMO, There Is More Interest Rate