In the context of Mortgage backed bonds (MBBs) which of the following statements is INCORRECT?

a.

Retail depositors require a low risk premium as they believe they are protected by RBA

b.

Wholesale depositors require a low risk premium and thus banks have an incentive to substitute these with MBBs

c.

Mortgage-backed bondholders have first claim on FIs mortgage assets in case of financial distress

d.

Trustee monitors the segregation of assets and ensures that the market value of collateral exceeds the principal owed to bondholders

e.

None of the above