The CMO is a considered a marketing innovation as well as a financial innovation,because it is the first security in the secondary mortgage market to have run a prime-time television ad.

Question

Quizplus · Accepted Answer

The CMO (Collateralized Mortgage Obligation) is considered both a marketing and financial innovation primarily due to its structure and the way it transformed the mortgage-backed securities market by creating different tranches to appeal to various types of investors, not because of its advertising strategies.

The CMO Is a Considered a Marketing Innovation as Well