What could a CMO do for you?David Lerner Associates typically offers CMOs that:
- Provide monthly income
- Are liquid on any business day
- Are of the highest quality and safety*
The Collateralized Mortgage Obligations bond investor is able to buy and sell directly from David Lerner Associates, one of the major Collateralized Mortgage Obligation bond firms in the New York tri-state area.
David Lerner Associates was one of the first companies to make CMOs available to the average investor.
*CMOs that are backed by GNMA, FNMA or FHLMC.
The market value of a CMO is largely affected by interest rates including mortgage interest rates and prepayment rates of principal. Changes in both can have positive or negative effects on the value of a CMO. A rise in interest rates will usually cause the value of existing CMOs to drop and a decrease in interest rates will usually cause the value of existing CMOs to rise.