Jumbo MBS issued since 2010 have better tail-risk protection than deals issued before the financial crisis, according to analysts at Moody’s Investors Service. Provisions addressing tail risk aren’t uniform, however, with some differentiation among issuers. Tail risk occurs when only a few loans remain in an MBS, with activity on the loans subjecting investors to potentially unexpected losses. The risk is particularly pronounced for jumbo MBS as the average loan amount on many deals tops $700,000, and many of the transactions include loans with balances above $1.5 million. In a report released late last week, Moody’s noted...