RISK FACTORS You should purchase securities only if you understand and are able to bear the associated risks. The risks applicable to your investment depend on the principal and interest type of your securities. This section highlights certain of these risks. The rate of principal payments on the un- derlying  mortgage  loans  will  affect  the rate of principal payments on your securi- ties. The rate at which you will receive prin- cipal  payments  will  depend  largely  on  the rate of principal payments, including prepay- ments, on the mortgage loans underlying the related  trust  assets.  We  expect  the  rate  of principal payments on the underlying mort- gage loans to vary. Borrowers generally may prepay their mortgage loans at any time with- out penalty. Rates  of  principal  payments  can  reduce
your  yield.  The  yield  on  your  securities probably will be lower than you expect if: •  you bought your securities at a premium (interest only securities, for example) and principal payments are faster than you ex- pected, or •  you  bought  your  securities  at  a  discount (principal  only  securities,  for  example) and  principal  payments  are  slower  than you expected. In  addition,  if  your  securities  are  interest only  securities  or  securities  purchased  at  a significant premium, you could lose money on your investment if prepayments occur at a rapid rate. The level of LIBOR will affect the yields on floating rate and inverse floating rate se- curities. If LIBOR performs differently from what you expect, the yield on your securities may be lower than you expect. Lower levels of LIBOR will generally reduce the yield on floating  rate  securities;  higher  levels  of  LI- BOR will generally reduce the yield on in- verse  floating  rate  securities.  You  should bear in mind that the timing of changes in the  level  of  LIBOR  may  affect  your  yield: generally,  the  earlier  a  change,  the  greater the effect on your yield. It is doubtful that LIBOR will remain constant. An investment in the securities is subject to significant  reinvestment  risk.  The  rate  of principal payments on your securities is un- certain. You may be unable to reinvest the payments on your securities at the same re- turns provided by the securities. Lower pre- vailing   interest   rates   may   result   in   an unexpected return of principal. In that inter- est rate climate, higher yielding reinvestment opportunities  may  be  limited.  Conversely, higher prevailing interest rates may result in slower returns of principal and you may not be able to take advantage of higher yielding investment opportunities. The final payment on your security may occur much earlier than the final distribution date. Support securities will be more sensitive to rates  of  principal  payments  than  other securities. If principal prepayments result in principal  distributions  on  any  distribution date equal to or less than the amount needed to produce scheduled payments on the PAC and  TAC  classes, the related  support classes will not receive any principal distribution on that  date  (other  than  from  any  applicable accrual  amounts).  If  prepayments  result  in principal  distributions  on  any  distribution date greater than the amount needed to pro- duce scheduled payments on the related PAC and  TAC  classes  for  that  distribution  date, this excess will be distributed to the related support classes. The  occurrence  of  a  trigger  event  may significantly affect the weighted average life  of  non-sticky  jump  securities.  The principal distribution priorities of non-sticky jump   securities   will   change   temporarily upon  the  occurrence  of  a  specified  trigger event on any Distribution Date as described under "Terms Sheet – Allocation of Princi- pal" in this Supplement. A change in princi- pal  distribution  priority  could  significantly extend or shorten the weighted average life of any non-sticky jump class from the antici- S-11