What was developed in the early 1980s to offset some of the problems with traditional mortgage pass-throughs?
A) variable rate mortgages
B) collateralized mortgage obligations (CMOs)
C) leveraged buyouts (LBOs)
D) deep discount bonds (DDBs)
E) high yield bonds.

Question

Quizplus · Accepted Answer

Collateralized mortgage obligations (CMOs) were developed in the early 1980s to offset some of the problems with traditional mortgage pass-throughs. CMOs repackage mortgage-backed securities into smaller, more targeted securities with different levels of risk and return.

What Was Developed in the Early 1980s to Offset Some