While collateralised mortgage obligation (CMO) is still the primary mechanism for securitisation, the pass-throughs are second and growing vehicle for securitising bank assets.

Question

Quizplus · Accepted Answer

Collateralized mortgage obligations (CMOs) and pass-through securities are both mechanisms for securitization, but pass-throughs have been a primary method for securitizing mortgage loans for a long time, not just a growing secondary vehicle.

While Collateralised Mortgage Obligation (CMO) Is Still the Primary Mechanism