Journal Article

Derivative mechanics: the CMO


Abstract: A primer on how collateralized mortgage obligations (CMOs) work, looking at both their advantages and disadvantages and explaining how some seasoned market participants got into trouble by investing in these interest-rate-sensitive financial instruments.

Keywords: Mortgages; Derivative securities;

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 1995

Issue: Sep

Order Number: 1