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Why Is Repo a Collateralized Loan?

Repo is a financing transaction that mainly involves government securities, where a dealer or a holder of government securities such as bills, notes,...

What Is Securitization?

Securitization is a type of structured finance that involves the pooling of assets (or specific types of assets such as...

What Are the Functions of Securitization?

Securitization is a type of structured finance that involves the pooling of assets (or specific types of assets such as...

Why Use a Tranche Thickness Loss Multiple?

In relation to a tranche and tranche thickness, a TTLM (tranche thickness loss multiple) is the loss coverage multiple defined...

Why Is TTLM Used?

In relation to a tranche and tranche thickness, a TTLM (tranche thickness loss multiple) is the loss coverage multiple defined...

Why Are CMOs Important?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...

Why Is a CMO Known as a Customized Security?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...

What Is Bond Yield?

Bond yield is the rate of return that accrues on a bond, which is determined by interest payments and any...

What Is the Difference Between a Pass Through and a CMO?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...

What Is the Difference Between CMO and MBS?

A CMO (collateralized mortgage obligation) is a structured product that is backed and collateralized by a pool of mortgage loans...