An Asset-Backed Bond Is Usually Overcollateralized Because

An asset-backed bond is usually overcollateralized because

A) overcollateralization serves to reduce risk to investors and therefore reduces the required yield for the asset.
B) overcollateralization mitigates moral hazard.
C) overcollateralization improves risk sharing in the sense that investors are protected against decreases in the value of collateral between valuation dates.
D) all of the above
E) only b and c