Among the many types of mortgage-related securities markets being reshaped by some skepticism in the wake of the recent downturn is the collateralized mortgage obligation market.

Among uses of CMOs are to hedge interest rate risk-never an easy task-particularly last Thursday given the shock to the market that some lenders said caused rates to fall as much as 50 basis points. So investors may both be looking closely at them and their risks in today's market and that is why those in the CMO business are taking a cautious approach.

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