Another company singing the mortgage blues is Luminent Mortgage Capital. It’s not often a company gets recognition from the New York Stock Exchange. Shares of Luminent Mortgage Capital (LUM), a REIT that invests in single-family, mortgage-backed securities, plunged Aug. 6 after trading in the shares was halted on the NYSE, which said news on the company is pending.
We won’t even speculate but we do know that Luminent relies on the CMO and CDO markets. A CDO, or collateralized debt obligation, is an investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize on one type of debt. CMO’s are collaterized mortgage obligations.