A collateralized mortgage obligation (CMO) is a type of mortgage-backed security that combines multiple mortgage loans and separates them into tranches based on maturity and risk.
A Mortgage-Backed Certificate (MBC) is a type of security that is backed by a collection of mortgages. Investors in MBCs receive periodic payments derived from the interest and principal payments made on the underlying mortgages.
A Mortgage-Backed Security (MBS) is a type of asset-backed security that is secured by a collection of mortgages. These securities enable banks to lend more aggressively while transferring the associated risk to investors.
Pass-through securities represent a financial instrument where income generated from a pool of underlying assets, such as loans or mortgages, is passed on to investors through intermediaries.
