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What are the mortgage obligations? How do they work?

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CMOs are categorized by risk, and some are much more dangerous than others.

What are the mortgage obligations?

Mortgage Obligations, or CMOs, are a type of Security Backed Mortgage. Thousands of individual mortgages are grouped together into classes or tranches, and categorized by level of risk.



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Carvana, Amazon’s used-car hub, is falling apart

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Carvana, the used-car Amazon, is having one of its worst days on Wall Street on Wednesday.

Shares of Carvana fell more than 36% to $4.27 as doubts mounted over the company’s ability to meet payment deadlines.

The numbers are shocking: the stock has lost 45% since the beginning of December. November was a rough one as Carvana shares fell 43%. The stock, which ended 2021 at $231.79, is now down 98% since January.

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The market cap is now $760 million. In short, the comparative market capitalization, if shares outstanding were the same in both periods, would have been $41.45 billion on December 31, 2021.



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Citigroup CEO expects trading revenue to rise 10% in fourth quarter, but investment banking slips by Reuters

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© Reuters. FILE PHOTO: The Citibank logo is seen on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, August 3, 2021. REUTERS/Andrew Kelly/File Photo

NEW YORK (Reuters) – Citigroup Chief Executive Jane Fraser said on Wednesday that revenue in its trading division will rise 10 percent in the current quarter from a year earlier, but investment banking fees will fall 60 percent, in line with industry.

The trading desks have been a surprising bright spot for some of the largest US banks this year as clients reorganized their portfolios across asset classes in response to the cooling markets.

“We’re hoping for a 10% (increase) in the markets based on what we saw in October and November,” Fraser told the Goldman Sachs (NYSE) Financial Services Conference.

But Wall Street investment bankers who were steeped in deals in 2021 have seen activity dip as volatility in capital markets, geopolitical tensions and risk sentiment dampen appetite for deals.

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As stock market listings fade and companies tighten the brakes on deal-making, investment banking revenues have fallen sharply across the industry. The tough operating environment has also led to job cuts at major lenders, with executives warning of more pain ahead.

Separately, in line with previously announced plans to streamline the global banking giant, Fraser said Citi is moving ahead with divestments, exiting the retail banking business in non-core international markets.

“From a strategic perspective, I think we’re all pleased with the progress and how we’re starting to see some initial results materialize in the data,” added Fraser.

Citi is in advanced talks with suitors looking to buy Mexican retail bank Banamex, according to media reports earlier this week. Citi said in January it was looking for a buyer for the unit.

Citigroup (NYSE:) The $12.5 billion acquisition of Banamex in 2001 was the largest ever in Mexico at the time.

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Royal Caribbean mistake causes huge passenger problem

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When people book a vacation, they make those plans months, sometimes years, in advance. This is because, in most cases, going on a trip, especially one that not only involves your family, but maybe even family and friends, there are a lot of moving pieces.

You have to find a time in the calendar that matches when adults can be off work and kids out of school. This can be difficult and often requires people to take time off from their employers, move other things, or arrange child or elderly care for children who are not making the trip.



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