Which one of the following forms of securitization is usually "double securitization"?

Question

Quizplus · Accepted Answer

CMO (Collateralized Mortgage Obligation) is often double securitized, meaning that the cash flow from a pool of underlying mortgage-backed securities is divided into separate tranches with different risks and returns, which are then re-securitized and sold to investors. This process involves the creation of complex securities with multiple layers of risk and can lead to increased yields for investors but also higher levels of complexity and risk. The other options (A, C, D) are not typically associated with double securitization.

Which One of the Following Forms of Securitization Is Usually