Market Interest Rates: Changes in prevailing interest rates directly impact CMDO.TO, as it primarily holds Canadian mortgage-backed securities. Higher rates can decrease the value of existing mortgages, lowering the ETF's price.

Mortgage Prepayment Rates: If homeowners prepay their mortgages faster than anticipated, the underlying securities' cash flows change, which affects the ETF's yield and price. Faster prepayments generally reduce returns when interest rates are falling.

Credit Spreads: Widening credit spreads, reflecting increased perceived risk in mortgage-backed securities, can lower the value of CMDO.TO. Conversely, narrowing spreads may increase its value.

Supply and Demand: General market conditions and investor sentiment towards fixed income securities, particularly mortgage-backed securities, can drive the supply and demand for CMDO.TO, influencing its price. High demand raises prices.

Economic Outlook: The overall economic outlook influences mortgage performance. A strong economy reduces defaults and delinquencies, supporting CMDO.TO's price. A weakening economy can increase defaults, negatively impacting the price.