So the sequence is as follows: MBS/ABS --> Passthrough securities --> CMO right?? Thanks
Passthrough securities are when the cashflows are spread equally (on a pro-rata basis of their investment) to the securityholders A CMO is the other animal: A CMO is a paythrough mortgage backed security. Paythrough means that we create tranches and investors in the different tranches will be entitled to different cash flow streams.
Anish, Some of the structures products that I could think off… [Many Mortgage loans] --> [Mortagage Pool] --> [Passthrough Securities] --> [Investors] Where [Passthrough Securities] --> [Agency] OR [Non-Agency] [Confirming Loans] --> [Agency Passthrough Securities] --> [Gennie] [Freddie] [Fannie] [Whole lonas {non-confirming}] --> [Non-Agency Passthrough Securities] --> [Others] [Mortgage Pools] --> CMO Tranches{Seq Pay, PAC, Support} --> [investors in each tranch] [Stripped MBS] --> [PO] OR [IO] [Commercial MBS] --> [Lease-Apt, Hotel, Office = All income producing] [Many Customer] --> [Many Auto Loan] --> [Loan Pool] --> [ABS] --> [tranches] --> [Investors] … If others could help add any other products that they could remember off the top of their minds?
dinesh…it’s no wonder you’re an IT geek… You manage to make every answer look like a flowchart!! PS: no offence…they do help clear doubts 
mumukada Wrote: ------------------------------------------------------- > dinesh…it’s no wonder you’re an IT geek… > > You manage to make every answer look like a > flowchart!! > > PS: no offence…they do help clear doubts llllllllllllooooooooooollllllllllll
Excellent work Dinesh bhaiya!!
Thanks Dinesh, and thanks others.