Compare the risks for the net worth $($equity$)$ of the following two portfolios:

a$.$

Assets:

Liabilities:

$500$ in $10$ year T$-$bond

$100$ in cash

$500$ in floating$-$rate collateralized finance $($repo$)$

$100$ in Equity

Also, there is the following off$-$balance sheet item: $10-$year swap, receive fixed, pay float on notional principal of $500.$

b$.$

Assets;

$100$ in cash

Liabilities:

$500$ in $10$ year T$-$bond

$500$ in collateralized floating$-$rate lending $($reverse repo$)$

$500$ in floating$-$rate collateralized finance $($repo$)$

$500$ in $9\mathrm{.}75-$year T$-$bond sold short $($collateral for the reverse repo$)$

$100$ in equity

Which of the following is true?

$*$ Portfolios a has more interest rate risk.

$*$ Portfolio a has almost no interest rate risk due to nearly offsetting positions.

$*$ Portfolio b has more credit risk.

$*$ Portfolio b has more overall risk.

$*$ Portfolio a has less credit risk, but more interest rate risk.