In comparison to mortgage pass-though securities,CMOs attract a broader class of investors because,by prioritizing cash flows,they can offer more specific maturities.

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CMOs, or collateralized mortgage obligations, are structured mortgage-backed securities that prioritize the specific cash flows from the underlying mortgages. This allows for the creation of tranches with more specific maturities, making them appealing to a broader class of investors. Mortgage pass-through securities, on the other hand, do not generally offer such specificity in their cash flows or maturities.

In Comparison to Mortgage Pass-Though Securities,CMOs Attract a Broader Class