February 15, 2012
IT WAS A MATTER OF DERIVATIVE FRAUD, NOT OF BAD MORTGAGES:
Toxic? Says Who? Taste For 'Subprime' Returns (SERENA NG, 2/15/12, WSJ)
Investors' belief that the worst is over for the U.S. housing market is fueling renewed interest in once-toxic mortgage bonds that were at the heart of the financial crisis.Prices of some distressed bonds backed by subprime home loans--those issued before the crisis to borrowers with sketchy credit histories--have chalked up double-digit percentage gains this year, with one prominent market index rising 14%.
Posted by Orrin Judd at February 15, 2012 6:42 PM
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