Which of the following is / are not mortgage security risks … A. Basis Risk B. Interest rate risk C. Spread risk D. PrePayent risk E. Volatility risk F. Model risk G. hedge risk H. Yield curve risk Cheers
A. Basis Risk G. hedge risk H. Yield curve risk A - don’t think applies G - haven’t heard of this, but if refering to the hedge, the interest rate risk covers it Y - as above
Does apply: B, C, D, E, F, H