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Basic Question 0 of 11
The spread between the yields on a Ginnie Mae pass-through security and a comparable Treasury security is best explained by ______.
A. credit risk
B. prepayment risk
C. reinvestment risk
User Contributed Comments 3
| User | Comment |
|---|---|
| gomez1234 | how about credit risk? are they considered equal? i hope not :) |
| CJHughes | GNMA backed by the US Gov. Same ultimate credit risk guaranteed. |
| Rohule | does reinvestment and prepayment risk are corelated ? thanks |
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Learning Outcome Statements
describe types and characteristics of residential mortgage-backed securities, including mortgage pass-through securities and collateralized mortgage obligations, and explain the cash flows and risks for each type
CFA® 2025 Level I Curriculum, Volume 4, Module 19.