| 1. | With condominiums, he explained, no underlying mortgage on the building is permitted.
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| 2. | "They're playing the market, even with their underlying mortgages, " he continued.
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| 3. | If rates rise, the underlying mortgages will not be refinanced.
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| 4. | Mortgage fund investors are not exposed to any operational expenses of the underlying mortgage business.
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| 5. | Lower interest rates increase the risk that homeowners will refinance the loans underlying mortgage bonds.
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| 6. | "You can't just stumble into a new underlying mortgage,"
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| 7. | The securities registered yesterday will fund the purchase of the underlying mortgages, the filing said.
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| 8. | That's because the holders of the underlying mortgages have already had the opportunity to refinance.
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| 9. | The narrower yield spread of the Dah Sing issue also indicates a higher-quality underlying mortgage portfolio,
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| 10. | You just have to look at what the underlying mortgage rate was and figure it out from there.
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