CMOs
noun[plural]
FINANCEukusabbreviationforcollateralizedmortgageobligations: agroupofhomeloansthat are put together to make newbondstosell. Thepaymentson thehomeloansare used topaytheintereston the newbonds:
CMOs aresecuredonrealproperty, but ifpropertypricesfalland borrowers can'trepay, there areconsequencesfor thewholeeconomy.