Course 203:
Collateralized Mortgage Obligations
In this course
1 Introduction
2 What Are Collateralized Mortgage Obligations?
3 Companion Bonds and PACs
4 Strategic Considerations for Collateralized Mortgage Obligations
5 Are They For You?

Mortgage-backed securities, or pass-throughs as they are sometimes called, provide an investment that has the security of bonds but with a higher yield. Unlike bonds, however, you never know when the home mortgages that back pass-throughs might be prepaid, introducing a note of uncertainty to your investment. Collateralized mortgage obligations, or CMOs, are mortgage-backed instruments that make the term of your investment more reliable.

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