Collateralized mortgage obligation (CMO) - Meaning
A security backed by a pool of pass-throughs , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security Collection float The negative float that is created between the time when you deposit a check in your account and the time when funds are made available.
