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Assume that Ginnie Mae sponsored pass through securities have been acquired by another entity (e.g., Freddie Mac) and reissued as a Collateralized Mortgage Obligation or
Assume that Ginnie Mae sponsored pass through securities have been acquired by another entity (e.g., Freddie Mac) and reissued as a Collateralized Mortgage Obligation or CMO. In a CMO the respective tranches:
A. | Promise a different return (coupon) to investors | |
B. | The Ginnie Mae sponsored pass throughs have substantial credit risk which now becomes reissued through the CMO. | |
C. | Carries a different maturity or duration exposure | |
D. | A and C above | |
E. | All of the above |
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