GNMA pass-through bondholders can be protected against default risk by FHA/VA housing insurance.

Name: GNMA pass-through bondholders can be protected against default risk by FHA/VA housing insurance.
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GNMA pass-through bonds are comprised of mortgages backed by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). These mortgages are insured by the agencies, which provides a level of protection against default risk for bondholders.

GNMA Pass-Through Bondholders Can Be Protected Against Default Risk by FHA/VA