Brookstreet Securities Under Liquidation
CMO's coming back to bite Stanley Brooks at Brookstreet Securities. The buzz at the conference we are attending today revolves around a hedge fund liquidation in progress.CMO's. A collateralized mortgage obligation (CMO) is a financial debt vehicle that was first created in June 1983 by investment banks Salomon Brothers and First Boston. Legally, a CMO is a special purpose entity that is wholly separate from the institution(s) that create it. The entity is the legal owner of a set of mortgages, called a pool. Investors in a CMO buy bonds issued by the entity, and receive payments according to a…