1.   And the business has feasted for several years by transforming the simple pass-through bonds into far more complex securities known as collateralized mortgage obligations.

2.   At Salomon, Parseghian headed trading of collateralized mortgage obligations, the custom-made bonds cut from bundles of home mortgages.

3.   Firm Cuts Mortgage Business Citicorp Securities is reducing its mortgage securities business, saying it would no longer underwrite mortgage obligations issued by government-sponsored enterprises.

4.   Known as collateralized mortgage obligations, or CMOs, they are bond-like securities created by carving out various cash flows from a pool of traditional mortgages.

5.   Korzelius will trade collateralized mortgage obligations issued by government-sponsored enterprises, such as the Federal National Mortgage Association.

6.   Kazdin said the plan may depress prices of the floating-rate collateralized mortgage obligations when thrifts value them at the end of the June reporting period.

7.   Meanwhile, the shortage of collateralized mortgage obligations -- custom-made mortgage securities cut from bundles of home mortgages -- has inflated prices, traders and investors said.

8.   Most recently, he was in charge of trading the more complex sort of mortgage bonds known as collateralized mortgage obligations.

9.   Soured by losses in the past two years, some money managers are passing up securities they view as troublesome, including some types of collateralized mortgage obligations.

10.   Still, demand from Wall Street securities firms creating new collateralized mortgage obligations may prevent yield spreads from widening much, say traders.