When identifying factors that contributed to the recent financial crisis many

When identifying factors that contributed to the recent financial crisis many commentators have pointed to the principal-agent problem associated with
securitization namely that the agent the originator can have poor incentives to act in the interest of the principal the ultimate investor. An example
of this would include which of the following?

a. The lack of liquid hedging instruments in the securitized mortgage market.

b. Optimistic correlation assumptions embedded in rating agency models.

c. The failure of originators to retain sufficient holdings of residual interest risk.

d. Lack of sufficient subordination in securitized mortgage products.