CMO tranches are structured to create long, intermediate and short-term securities.

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CMO (Collateralized Mortgage Obligations) tranches are structured to allocate cash flows from the underlying mortgage loans in a way that creates securities with varying maturities and risk profiles, including long, intermediate, and short-term securities. This structuring allows investors to choose investments that match their risk tolerance and investment horizon.

CMO Tranches Are Structured to Create Long, Intermediate and Short-Term