CMO

See: Collateralized mortgage obligation

Collateralized Mortgage Obligation

An asset-backed security backed by mortgages. Banks package and sell their receivables on mortgages to investors in order to reduce the risk coming from defaults. Returns on CMOs are paid in tranches; that is, an individual mortgages backing CMOs have different maturities and investors are paid out according to their level of investment. Banks offer higher interest rates to investors willing to buy CMOs backed by higher-risk mortgages, such as subprime mortgages. See also: Collateralized loan obligation.

CMO

See collateralized mortgage obligation.

Collateralized mortgage obligation (CMO).

CMOs are fixed-income investments backed by mortgages or pools of mortgages.

A conventional mortgage-backed security has a single interest rate and maturity date. In contrast, the pool of mortgages in a CMO is divided into four tranches, each with a different interest rate and term.

Owners of the first three tranches receive regular interest payments and principal is repaid to reflect the order in which the tranches mature. The fourth tranche is usually a deep-discount zero coupon bond on which interest accrues until maturity, when the full face value is repaid.

CMOs usually involve high-quality mortgages or those guaranteed by the government. Their yield may be lower than those of other mortgage-backed investments.

However, the way in which they are repaid makes them especially attractive to institutional investors including insurance companies and pension funds.

The risk, as with all mortgage-backed securities, is that a change in interest rates can affect the rate of repayment and the market value of the CMO.

CMO

See collateralized mortgage obligation.

CMO

Acronym	Definition
CMO➣Chief Marketing Officer (various companies)
CMO➣Chi-Mei Optoelectronics (TFT/LCD monitor technology)
CMO➣Chief Medical Officer
CMO➣Central Meteorological Observatory (Japan)
CMO➣Crédit Mutuel Océan (French bank)
CMO➣Congés de Maladie Ordinaire (French: Regular Sick Leave)
CMO➣Communications and Marketing Office (various locations)
CMO➣Cardiomyopathy
CMO➣Campus Ministry Office (various locations)
CMO➣Collateralized Mortgage Obligation
CMO➣Cubic Mile of Oil (energy unit)
CMO➣Chief Merchandising Officer (various companies)
CMO➣Configuration Management Office
CMO➣Court-Martial Order (US military)
CMO➣Civil-Military Operations
CMO➣Chemult (Amtrak station code; Chemult, OR)
CMO➣Contractor Management Outsourcing
CMO➣Care Management Organization
CMO➣Creep Me Out
CMO➣Communication Médiatisée par Ordinateur (French: Computer Mediated Communication)
CMO➣Chief Military Observer (US DoD)
CMO➣Contract Manufacturing Organisation
CMO➣Contract Management Office
CMO➣Centre Missionnaire Oblat (French: Oblate Missionary Center; Canada)
CMO➣Chief Morale Officer (various organizations)
CMO➣Constructions Modernes de l'Ouest (French: Modern Buildings of the West)
CMO➣Current Market Outlook
CMO➣Chief Magic Official (Disney job)
CMO➣Check Me Out
CMO➣Common Market Organization (European Union)
CMO➣Care Management Officer (health care)
CMO➣Cisco Mobile Office
CMO➣Centre Militaire d'Océanographie (French: Military Oceanography Center)
CMO➣Clezardin Machines et Outillages (French machinery manufacturer)
CMO➣Contract Modification Order
CMO➣Certificate Management Office
CMO➣Count Me Out
CMO➣Caribbean Meteorological Organization
CMO➣Council of Ministers' Office (various organizations)
CMO➣Construction Métallique de l'Ouest (French steel construction company)
CMO➣Comfort Measures Only (similar to hospice care)
CMO➣Configuration Management Office(r)
CMO➣Carrelage et Moquette de l'Océan (French flooring company)
CMO➣Crisis Management Operations
CMO➣Customs Memorandum Order (Philippines)
CMO➣Competitive Mounted Orienteering (equestrian sport)
CMO➣Collections Management Office(r) (US DoD)
CMO➣Central MASINT Office (now Central MASINT Organization)
CMO➣Construction Modulaire Organisation (French: Modular Construction Organization)
CMO➣Constructions Mécaniques Outillages (French: Mechanical Construction Tools)
CMO➣Central Moneymarkets Office (UK banking)
CMO➣Corticosterone Methyloxidase
CMO➣City Managers Office
CMO➣Central MASINT Organization (formerly Central MASINT Office)
CMO➣Chief Maintenance Officer
CMO➣Civil-Military Overview (NATO)
CMO➣Centro Médico Oftálmico (Spanish: Ophthalmic Medical Center)
CMO➣Civil-Military Officer
CMO➣Cash Management Officer (job title)
CMO➣Chief Mortgage Officer (various companies)
CMO➣Canonical Molecular Orbital
CMO➣Cincinnati Metropolitan Orchestra (Cincinnati, OH)
CMO➣Collective Management Organization (World Intellectual Property Organization)
CMO➣Current Mode of Operation
CMO➣Catholic Media Office (UK)
CMO➣Convoy Movement Order
CMO➣Crisis Management Organization
CMO➣Contract Manufacturing Operation
CMO➣Chinese Mathematics Olympiad
CMO➣Calculated Mean Organism
CMO➣Carpathian Mountain Outreach (Ukraine)
CMO➣Configuration Management Organization
CMO➣Coverage Mission Order
CMO➣Commodore's Messenger Organisation
CMO➣Centro Médico Odescalchi (Italian)
CMO➣Centrum Mot Olikfientlighet (Sweden)
CMO➣Court of Military Order (Congo)
CMO➣Corporate Manufacturing Objects
CMO➣Chicago, St. Paul, Minneapolis, and Omaha Railroad
CMO➣Cash Me Out (poker)
CMO➣Chief Monitoring Officer
CMO➣Communications Management Organization
CMO➣Collection Management Office/Organization
CMO➣Controlled Materials Officer
CMO➣Community Manager's Office
CMO➣Centralized Mortgage Obligation
CMO➣Current Method of Operation
CMO➣Clandestine Mission Objective
CMO➣Circuit Management Office