26-24 Investors in GNMA pass-through securities are exposed to the risk that the originating bank may fail,and the risk that the trustee may mismanage monthly interest and principal payments collected.

Question

Quizplus · Accepted Answer

GNMA pass-through securities are backed by the full faith and credit of the U.S. government, which guarantees timely payment of principal and interest, mitigating the risk of bank failure or trustee mismanagement.

26-24 Investors in GNMA Pass-Through Securities Are Exposed to the Risk