Question
Residential Collateralized Mortgage Obligations (CMOs) issue securities in tranches. All of the following statements are correct EXCEPT: Investors can choose the (approximate) maturity of the
Residential Collateralized Mortgage Obligations (CMOs) issue securities in tranches. All of the following statements are correct EXCEPT:
| Investors can choose the (approximate) maturity of the investment | ||
| Investors can choose different types of income rights such as principal-only or interest-only | ||
| Tranches can be rated by a ratings agency | ||
| The tranches are designed to allow the issuer to market the pool in the secondary market over an extended time period, selling first one tranche, then a second tranche later, and so on. |
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Financial Statement Analysis
Authors: Andrew P.C.
1st Edition
1520985002, 978-1520985008
