A ________ which is a security backed by mortgage-backed securities could be "sliced and diced" into different "tranches" are parts such that the different parts would appeal to different investors.

Question

Quizplus · Accepted Answer

The correct term for a security backed by mortgage-backed securities that can be sliced and diced into different tranches is a collateralized debt obligation (CDO). The different tranches appeal to different investors based on their risk and return preferences. MPO, MDS, and MDO are not commonly used terms in the financial industry.

A ________ Which Is a Security Backed by Mortgage-Backed Securities