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  3. 1) how does a cmo differ from a cdo? 2) what does

1) How does a CMO differ from a CDO? 2) What does a CDO offer to...

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Finance

1) How does a CMO differ from a CDO?

2) What does a CDO offer to someone with credit risk fromlending that is not available otherwise.

Please provide a well-written/detailed answer for bothplease!

Answer & Explanation Solved by verified expert
3.8 Ratings (346 Votes)
1 The main difference between CMO and CDO is in the type of pooled asset that they both have Basically both CMO and CDO are both the products of a process in Finance called Securitization During securitization generally institutions like investment banks transfer the assets present on their balance sheet like bonds of a certain type to an entity called SPV Special Purpose Vehicle    See Answer
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