A Collateralized Mortgage Obligation (CMO) is a type of mortgage-backed security that splits mortgage pools into different maturity classes, called tranches, to optimize the distribution of interest rate and prepayment risk among investors.
A long bond is a bond that matures in more than 10 years. These bonds are riskier than shorter-term bonds of the same quality but normally pay investors a higher yield.
Treasuries are negotiable debt obligations of the U.S. government, secured by its full faith and credit, and issued at various schedules and maturities. The income from U.S. Treasury securities is exempt from state and local taxes but subject to federal taxes.
