This is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired.

Name: This is an accrual class of a CMO that makes a payment to bondholders only when preceding CMO classes have been retired.
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Class Z bonds are the last to receive payments from the collateral pool and are therefore known as accruing classes. They only make payments to bondholders once all preceding CMO classes have been retired.

This Is an Accrual Class of a CMO That Makes