Question: In a CMO structure with several PAC bonds, explain why, when the support bonds are paid off, the structure will be just like a sequential-pay

In a CMO structure with several PAC bonds, explain why, when the support bonds are paid off, the structure will be just like a sequential-pay CMO.

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The PAC bonds and support bonds are formed from the sequentialpay CMO If the support bonds are paid off earlier than expected then the structure rever... View full answer

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