Information about collateralized mortgage obligations (CMOs) can be found in Unit 5 of the eXtension "Investing for Your Future" course at www.extension.org/pages/Investing_for_Your_Future. However, we caution you not to invest in CMOs (or any other type of investment) unless you fully understand how the investment works, its fee structure and historical performance, and the risks involved. You also need to know whether the CMO is regulated. If you can't explain CMOs simply to another person, it means that you probably don't understand them well enough yourself. Never invest in anything that you don't fully understand or that is beyond your risk tolerance level. If it sounds too good to be true, it probably is.
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