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Consider traditional Mortgage Backed Bonds (MBBs). Which of the following is FALSE? a. MBBs trade similar to and compete with corporate bonds b. The investor

Consider traditional Mortgage Backed Bonds (MBBs). Which of the following is FALSE?

a.

MBBs trade similar to and compete with corporate bonds
b.

The investor /purchaser takes on the prepayment risk of the underlying portfolio
c.

MBB's are often "rated" by a credit rating agency
d.

In MBBs, the portfolio of mortgages remains on the balance sheet of the issuer

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