1.   A planned amortization class is a mortgage bond that has a stable average life so long as homeowners repay the underlying loans within a specified range of estimates.

2.   Commercial mortgage bonds are also popular because their underlying loans carry restrictions that prevent borrowers from refinancing for anywhere from several years to a decade.

3.   Erratic yield swings make it harder for mortgage investors to gauge how fast homeowners will repay the underlying loans.

4.   He said he picked the Ginnie Maes because their underlying loans are less likely to be refinanced.

5.   Hedge funds and institutional investors other than banks like these bonds because the underlying loans are relatively small and often less worthwhile for borrowers to refinance.

6.   Higher rates could give mortgage bonds a boost as homeowners find less incentive to prepay the underlying loans.

7.   If the underlying loans are repaid too fast, the supports will absorb these extra payments, so that the bond classes of the CMO receive steady cash flows.

8.   If yields keep falling, investors may buy more Treasuries to offset the risk that their mortgage bonds will be torn from them as homeowners refinance the underlying loans.

9.   Investors are usually willing to pay more for older-issues, since the homeowners with the underlying loans have already passed up chances to refinance.

10.   Mortgage bonds fell amid expectations that interest rates are already low enough to prompt more homeowners to refinance the underlying loans.