Explanation:
Answer: B) Not really pricing model
This is the EXCEPT choice because implied MBS models are, in fact, intended to be pricing-oriented: they infer cash flows or sensitivities from observed market prices.
The other items are real drawbacks:
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Q-53.4 According to Tuckman, IMPLIED MBS models have each of the following drawbacks EXCEPT FOR:
A
a) Cannot use historical price/rate data
B
b) Not really pricing model
C
c) May not capture abrupt duration changes
D
d) Recent implied sensitivities may be misleading