Home > Glossary > Second

Meaning / Definition of

Second

Categories: Banking,

noun, adjectivethe thing which comes after the firstverbUsageto second a motionto be the first person to support a proposal put forward by someone else ExampleMrs Smith seconded the motion or The motion was seconded by Mrs Smith.to lend a member of staff to another company, organisation or department for a fixed period of time ExampleHe was seconded to the Department of Trade for two years.

Featured term of the day

Definition / Meaning of

Collateralized Mortgage Obligation (CMO)

Categories: Finance,

CMOs are fixed-income investments backed by mortgages or pools of mortgages. A conventional mortgage-backed security has a single interest rate and maturity date. In contrast, the pool of mortgages in a CMO is divided into four tranches, each with a different interest rate and term. Owners of the first three tranches receive regular interest payments and principal is repaid to reflect the order in which the tranches mature. The fourth tranche is usually a deep-discount zero coupon bond on which interest accrues until maturity, when the full face value is repaid. CMOs usually involve high-quality mortgages or those guaranteed by the government. Their yield may be lower than those of other mortgage-backed investments.However, the way in which they are repaid makes them especially attractive to institutional investors including insurance companies and pension funds. The risk, as with all mortgage-backed securities, is that a change in interest rates can affect the rate of repayment and the market value of the CMO.

Most popular terms

1. Weather Derivative
2. Fill Or Kill Order (FOK)
3. Ordinance Or Law Coverage
4. Disclosure
5. 529 College Savings Plan
6. Circuit Breaker
7. Cash Balance Pension Plans
8. Americans With Disabilities Act (ADA) Of 1990
9. Stop Order
10. Catch-up Contribution

Search a term

Keyword:

Browse by alphabet

ABCDEFG
HIJKLMN
OPQRSTU
VWXYZ#

Browse by category

Accounting
Banking
Bankruptcy Assistance
Bonds and Treasuries
Brokerages
Business and Management
Compliance and Governance
Credit and Debt
E-commerce
Economics
Estate Planning
Forex
Fraud
Fundamental Analysis
Futures
Global
Insurance
International Trade
Investing and Trading
Ipos
Legal
Loan and Mortgage
Mergers and Acquisitions
Mutual Funds
Operation and Production
Options
Patent
Personnel Management
Real Estate
Retirement and Pension
Statistics and Risk Management
Stocks
Strategies
Tax
Technical Analysis
Venture Capital