About This Chapter
Asset-Based Securities - Chapter Summary
In this chapter, candidates who are preparing for tests in the securities industry can study topics related to asset-based securities, such as collateralized mortgage obligations and collateralized debt obligations. After reviewing this chapter, you should be able to:
- Discuss the characteristics of collateralized mortgage obligations, including maturities and interest payment periods
- Define the characteristics of collateralized debt obligations, including indenture and type of collateral
- Explain call and put features for both collateralized mortgage obligations and collateralized debt obligations
- Calculate accrued interest on a collateralized mortgage obligations and collateralized debt obligations
These interesting lessons, designed by skilled professionals, provide key information you need to know on this topic. Worksheets on each topic provide hands-on practice to ensure that you're gaining the skills you need to succeed on the exam.
1. Collateralized Mortgage Obligations (CMOs)
In this lesson, you will learn about a type of complex security called the collateralized mortgage obligation (CMO). A collateralized mortgage obligation is a type of security that uses mortgage backed security as collateral, hence the name of collateralized mortgage obligation.
2. Characteristics of Collateralized Mortgage Obligations (CMOs)
In this lesson, we will look at how collateralized mortgage obligations provide a means for mortgage companies to sell loan packages and others to invest in mortgage-backed securities. We will also look at the key characteristics of CMOs.
3. Collateralized Mortgage Obligations (CMOs): Call & Put Features
This lesson deals with the call and put features available for debt instruments. Learn about the characteristics of the special type of call provision available for collateralized mortgage obligations.
4. Calculating Accrued Interest on a Collateralized Mortgage Obligation
This lesson deals with collateralized mortgage obligations and calculations. Learn how to calculate accrued interest on collateralized mortgage obligations.
5. Collateralized Debt Obligations: Definition & Examples
In this lesson we will define what a collateralized debt obligation is along with specific forms and terminology as well as how this type of investment works for banks and investors.
6. Characteristics of Collateralized Debt Obligations (CDOs)
The lesson provides a summary of collateralized debt obligations (CDOs) and their common characteristics. You'll learn about the assets, tranches, payments schedule, call provisions, etc for CDOs.
7. Collateralized Debt Obligations (CDOs): Call & Put Features
This lesson deals with the call and put features of fixed income securities. You'll learn about the embedded call provisions of collateralized debt obligations (CDOs) and their effects.
8. Calculating Accrued Interest on a Collateralized Debt Obligation
This lesson deals with collateralized debt obligations (CDOs). Learn how to calculate the accrued interest for differing payment periods on a monthly and annual basis.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Municipal Securities Analysis & Regulations
- Registered Hedge Funds
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues