In an article titled CUNA Mutual Looks for Noncallable Corporates that appeared in the November 4, 1991, issue of BondWeek, p 6, Joe Goglia, a portfolio manager for CUNA Mutual Insurance Group, stated that he invests in planned amortization class tranches, which have less exposure to prepayment ris...

As seen below there are a lot of factors to consider before we assume that a PAC tranche will absolutely have less exposure to prepayment risk and wil ...

In an article titled CUNA Mutual Looks for Noncallable Corporates that appeared in the November 4, 1991,

Question:

In an article titled “CUNA Mutual Looks for Noncallable Corporates” that appeared in the November 4, 1991, issue of BondWeek, p. 6, Joe Goglia, a manager for CUNA Mutual Insurance Group, stated that he invests in “planned amortization class tranches, which have less exposure to prepayment risk and are more positively convex than other mortgage-backeds.” Is this true?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...