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5. Please explain the differences between Agency Mortgage- backed Securities (MBS) and Private Label Residential Mortgage (RMBS) in terms of the following: a. Prepayment Risk/Optionality;

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5. Please explain the differences between Agency Mortgage- backed Securities (MBS) and Private Label Residential Mortgage (RMBS) in terms of the following: a. Prepayment Risk/Optionality; b. Collateral Risk; c. Credit Risk Ratings; and d. Tranching; Specifically, how can both structures (potentially) offer AAA rated securities

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