CMO REIT

CMO REIT - A specialized type of Real Estate Investment Trust or REIT investing in the residual cash flow of the Collateralized Mortgage Obligations or CMOs. The cash flow representative of the CMO REIT is the difference between the holders and the paid rates stated. The investment holders of the underlying mortgage loans and the lower shorter-term rates paid directly to the known investors. The spreads are subject to the risk factor associated with the interest rate level and are unsound investments. The income is steady, but with very little growth movement. Other investments may specialize in the various property types in existence.