Close Navigation
Learn more about IBKR accounts

Collateralized Mortgage Obligation (CMO)

Trading Term

A type of Mortgage-Backed Securities that separates the principal and interest payments from the underlying mortgages into tranches (slices), each with a different rate of interest, repayment schedule, and priority level. Examples include:

  • Planned Amortization Class (PAC)
  • Targeted Amortization Class (TAC)
  • Companion/Support Bonds
  • Z-Tranches
  • Principal Only (PO) Securities
  • Interest Only (IO) Securities
  • Floating-Rate Tranches

IBKR Campus Newsletters

This website uses cookies to collect usage information in order to offer a better browsing experience. By browsing this site or by clicking on the "ACCEPT COOKIES" button you accept our Cookie Policy.