Bonds backed by pools of home equity loans often carry higher yields than other loan-backed securities because of their substantial:

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Bonds backed by pools of home equity loans often carry higher yields due to the prepayment risk. Homeowners can pay off their loans early, which affects the expected cash flows of the bond. This risk increases the potential for higher returns on the bond but also poses a greater risk to investors. The other risks listed (market risk, credit risk, liquidity risk, basis risk) may also be present but do not contribute as significantly to the higher yields.

Bonds Backed by Pools of Home Equity Loans Often Carry