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

Name: Most mortgage-backed bond issues conducted by deposit-taking institutions are under-collateralized.
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Most mortgage-backed bond issues conducted by deposit-taking institutions are over-collateralized. This means that they hold more assets in reserve as collateral than the actual value of the bonds issued. This is to ensure that investors are protected in case of defaults on the underlying mortgages.

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