Which of the following statements is true concerning collateralized mortgage obligations (CMOs)?

I: Many CMO's were rated higher than the underlying assets probably warranted

II: Few, if any, CMOs were insured with credit default swaps

III: CMOs, unlike other collateralized debt obligations, were not traded in the "shadow banking" system

A: I only

B: II only

C: III only

D: I & II only

E: II and III only