CMO =Central Meteorological Observatory 中央气象台
- A scenario analysis provides the most graphic evidence an investor can get of how volatile a CMO is likely to be.
- Andrew McConnell, a CMO trader for Bear, Stearns & Co., concedes that in view of the prepayment risk there's better value now in Ginnie Maes backed by 8% mortgages, rather than those backed by 9% mortgages.
- The structures of different CMO issues vary widely, and while that makes comparison shopping a tough task, assistance is becoming more available.
- Still, an analysis from any major securities firm should be good enough to give individual investors a pretty good idea of what they'll be getting into if they buy the CMO.
- Strong demand led PaineWebber to increase the size of the PaineWebber CMO Trust Remic mortgage securities offering, launched Wednesday, to $370 million from an initial $200 million.
- The machine can evaluate how the bottom tier of a CMO will perform under scores of interest rate scenarios in about 90 seconds, compared with about 20 minutes for a desktop workstation, Pica says.
- The estimated maturity of the FHLMC Remic Gold Series 1113-O wouldn't extend much if rates rose, but it was very long-term to start, even by CMO standards.
- They failed to pay enough attention to innovations in the CMO market at an earlier stage, and when finally prodded by losses, may have over-reacted. Like all market upsets, this one has created opportunities for contrary investors.