Type of collateralized mortgage obligation in which there are several lenders. When the borrower begins paying off the mortgage, all lenders receive interest payments, but only the senior lender receives payments on the principal. When the senior lender's portion of the principal has been paid off, the next most senior member begins receiving payments on the principal, and so on.
Related information about sequential pay CMO:
- Sequential Pay CMO Definition | Investopedia
A type of collateralized mortgage obligation (CMO) in which there are several tranches. Each tranche's holder receives interest payments as long as the ...
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Definition of sequential pay CMO: Type of collateralized mortgage obligation in which there are several lenders. When the borrower begins paying off the ...
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CMOs-Sequential Pay CMO PAC tranches use a mechanism similar to a “sinking fund” to establish a fixed principal payment schedule that directs cash-flow ...
- Sequential Pay CMO: Definition from Answers.com
Sequential Pay CMO A type of collateralized mortgage obligation (CMO) in which there are several tranches.
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SEQUENTIAL-PAY CMO. INTEREST ..... Clean CMO: See “Sequential-pay CMO. ” .... Sequential-pay CMO: The most basic type of CMO, in which all tranches ...
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A sequential pay CMO involves tranches that pay off principal sequentially. For example, consider the following case, where all principal from the underlying ...
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paid off, the structure is effectively reduced to a sequential-pay CMO. The support bonds can be thought of as bodyguards for the PAC bondholders. When the ...
- Collateralized Mortgage Obligation
Explained: collateralized mortgage obligation · sequential pay CMO bond. A collateralized mortgage obligation (CMO) is a type of mortgage-backed security ...