View Full Version : CMO's

09-18-2005, 08:24 PM
Does anyone own a CMO tranche? I know the minimum investment is high, but are these a good investment? Also, where can you buy these online? I haven't found a place that sells them.

09-19-2005, 12:27 AM
For the benefit of those reading this who have no idea what he's talking about...


09-19-2005, 05:10 PM
CMOs should be an awesome investment for the next year or so with interest rates going up, no?

I remember a professor talking about them a while ago, minimal investment was atleast $10k I think, cant remember. Ill shoot him an email and see if he can say anything more about them.

09-19-2005, 11:07 PM
I read the "Bond Bible" by Marilyn Cohen. She does NOT like CMOs as a fixed income investment. From what I remember she stated that tranches sold to the public are generaly the lower quality ones. I can re-read the section and be more specific if you want.