Stripped mortgage-backed securities fully protect investors from having to reinvest their income at lower interest rates.

Name: Stripped mortgage-backed securities fully protect investors from having to reinvest their income at lower interest rates.
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

Stripped mortgage-backed securities (SMBS) do not fully protect investors from reinvestment risk, as they separate the principal and interest payments, exposing investors to the risk of having to reinvest their income at potentially lower interest rates.

Stripped Mortgage-Backed Securities Fully Protect Investors from Having to Reinvest