![Collateralised Mortgage Obligation (CMO)](https://img-cdn.financeunlocked.com/headers-images/financeunlocked/4.jpg?ik-sdk-version=javascript-1.0.3)
Collateralised Mortgage Obligation (CMO)
Collateralised Mortgage Obligations are a type of Mortgage-backed Security representing claims on the cash flows from underlying mortgage pools. CMOs segregate mortgage pool receivables into tranches with different risk characteristics and rights to the cash flows.