Most mortgage-backed bond issues conducted by depository institutions are under-collateralized.

Name: Most mortgage-backed bond issues conducted by depository institutions are under-collateralized.
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Most mortgage-backed bond issues conducted by depository institutions are fully collateralized, meaning the bonds are backed by the actual mortgages themselves. In the event of default, the bondholders can claim ownership of the underlying mortgages.

Most Mortgage-Backed Bond Issues Conducted by Depository Institutions Are Under-Collateralized