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This excerpt taken from the ALL 10-Q filed May 7, 2009. MBS totaled
$4.64 billion, with 94.4% rated investment grade, at March 31, 2009. The MBS portfolio is subject to interest rate
risk since price volatility and the ultimate realized yield are affected by the
rate of prepayment of the underlying mortgages.
The credit risk associated with our MBS is mitigated due to the fact
that 76.4% of the portfolio consists of securities that were issued by, or have
underlying collateral that is guaranteed by, U.S. government agencies.
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