A CMO REIT is a type of Real Estate Investment Trust (REIT) that primarily invests in Collateralized Mortgage Obligations (CMOs), deriving its cash flow from interest and principal receipts on these securities.
Mortgage-Backed Bonds (MBBs) are a type of bond that is secured by a pool of mortgage loans, providing investors with regular interest payments derived from the underlying mortgage payments.
Pass-Through Certificates (or Securities) represent interests in a pool of mortgages sold by mortgage bankers to investors, where money collected as monthly mortgage payments is distributed to certificate holders. These securities are often guaranteed by agencies like Ginnie Mae.
Risk vs. Reward is a financial concept that attempts to compare the potential fluctuations, especially the downside, with potential benefits of an investment or financial decision.
