Collateralized mortgage obligations were created to

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Collateralized mortgage obligations (CMOs) were created to meet the demand for mortgage-backed securities with a range of maturities. CMOs allowed investors to choose from various tranches with different risk profiles and maturities, making them suitable for a range of investment objectives. CMOs are created by aggregating individual mortgages into relatively homogeneous pools, and then redistributing the cash flows from those pools into different tranches or classes. This structure allows investors to choose the tranche that best meets their needs, whether it's a short-term or long-term investment, or a higher or lower risk investment.

Collateralized Mortgage Obligations Were Created to