In a CMO structure with several PAC bonds, explain why, when the support bonds are paid off,

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In a CMO structure with several PAC bonds, explain why, when the support bonds are paid off, the structure will be just like a sequential-pay CMO.

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Bond Markets Analysis and Strategies

ISBN: 978-0133796773

9th edition

Authors: Frank J.Fabozzi

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Question Posted: Aug 22, 2015 07:34 AM

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In a CMO structure with several PAC bonds, explain why, when the support bonds are paid off,

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The PAC bonds and support bonds are formed from the sequentialpay CMO If the support bonds are paid off earlier than expected then the structure rever...View the full answer

Bond Markets Analysis and Strategies

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