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Dikjones writes:

<<I just read TMFPixy's Bond Ladder note and wish to know if
collateralized mortgage options CMO amount to the same thing. If not,
which is best?>>

I'm not sure there is a "best," only what's right for you based on your comfort level. CMO's in my mind are more like (and somewhat worse than) a bond fund as opposed to an individual security. Part of the payments they throw off are principal and part interest. And the interest definitely can vary depending on any prepayment of principal by the debtor. I believe CMOs are tougher to ladder because maturities are harder to predict.

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