One difference between mortgage securities and corporate bonds is that mortgage securities tend to be "overcollateralized."

Question

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Mortgage securities are typically backed by a pool of mortgages, and the value of the underlying properties often exceeds the value of the mortgage loans. This means that the securities are usually overcollateralized, providing additional security to investors. In contrast, corporate bonds are not backed by specific assets and do not have the same level of collateralization.

One Difference Between Mortgage Securities and Corporate Bonds Is That