In comparison to other mortgage-backed securities,the unique characteristic of CMOs is that:
A) CMO issuers do not retain ownership of the underlying mortgage pool
B) CMOs are issued in multiple security classes
C) The CMO mortgage pool is not overcollateralized
D) CMOs are a pay-through in which all amortization and prepayments flow through to investors
Correct Answer:
Verified
Q16: Cash flows remaining after all CMO tranches
Q17: In CMO terminology,planned amortization classes (PACs)are also
Q18: CDOs often include "B" notes,mezzanine debt and
Q19: In CDOs both equity and debt holders
Q20: One way in which a mortgage pay-through
Q22: The residual position in the CMO offering
Q23: Which of the following is NOT characteristic
Q24: Which of the following statements regarding subprime
Q25: These items are hybrid securities that contain
Q26: Which of the following investments in NOT
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