in their overall portfolio. Collateral In the context of project financing, additional security pledged to support the project financing. Collateral trust bonds A bond in which the issuer (often a holding company) grants investors a lien on stocks, notes, bonds, or other financial asset as security. Compare mortgage bond. Collateralized Bond Obligation (CBO) Investment-grade bonds backed by a collection of junk bonds with different levels of risk, called tiers, that are determined by the quality of junk bond involved. CBOs backed by highly riskyjunk bonds receive higher interest rates than other CBOs. Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, Collateralized loan obligation (CLO) A security backed by a pool of commercial or personal loans , structured so that there are several classes of bondholders with varying maturities, called tranches. Similar in structure to Collateralized Mortgage Obligations. Collateralized mortgage obligation (CMO) A security backed by a pool of pass-through rates , structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass-through securities are used to retire the bonds on a priority basis as specified in the prospectus. Related: mortgage pass-through security. Collecting Bank A bank that assists in obtaining payment in accordance with draft payment terms. Collection The presentation of a negotiable instrument for payment, or the conversion of any accounts receivable into cash. Collection float The period between the time is a check is deposited in an account and the time funds are made available. Collection fractions The percentage of a given month's salescollected during the month of sale and each month following the month of sale. Collection period See: Collection ratio Collection policy Procedures a firm follows in attempting to collectaccounts receivables. Collection ratio The ratio of a company'saccounts receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash. Collective wisdom The combination of all the individual opinions about a stock's or security's value. Colombo Stock Exchange Established in 1984, the only public stock exchange of Sri Lanka. COLT (Continuous on-line trading system) Computerized OTC traders assistance system that provides for trade entry and position monitoring, among other functions. Comanager A bank that ranks just below a lead manager in a syndicatedEurocredit or international bond issue. Comanagers may assist the lead manager bank in the pricing and issue of the instrument. Combination Applies to derivative products. Arrangement of options involving two long or two short positions with different expiration dates or strike (exercise) prices. See: Straddle. Combination annuity See: Hybrid annuity Combination bond A bond backed by the government unit issuing it as well as by revenue from the project that is to be financed by the bond. Combination order See: Alternative order Combination matching Also called horizon-matching, a variation of multiperiod immunization and cash flow-matching in which a portfolio is created that is always duration-matched and also cash-matched in the first few years. Combination strategy A strategy in which a put and