So, whether you’re studying an article or a evaluate, you can trust that you’re getting credible and reliable info. A long-dated asset is a sort of income-generating asset with a income stream that happens over a protracted time period till maturity. Prepayment risk is highly probably within the case of an MBS and consequently cash flows can be estimated however are topic to change. The authorities, however, doesn’t guarantee Freddie Mac and Fannie Mae. If they default, the government just isn’t obligated to come to their rescue. However, the federal government does provide a guarantee to Ginnie Mae.
