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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Knighty Tin who wrote (203)9/26/1998 7:20:00 PM
From: Henry Volquardsen  Read Replies (4) of 2794
 
Michael,
technical point but I disagree that a CMO is a derivative. A CMO is a security in its own right and can be independantly priced. Yes it has optionality but so do convertible bonds.
You can, however, have derivatives that are priced off of CMOs.
Henry
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