Enter multiple symbols separated by commas

Subprime Bonds Come Roaring Back


No doubt about it. Subprime is back. Mortgage-backed securities are hot again.

Many of the hedge fund traders gathered at the Skybridge Alternatives investor summit (SALT) at the Bellagio Hotel in Las Vegas are enthusiastically seeking out the once "toxic" mortgage bonds for their portfolios.

Even Kyle Bass, the Texan hedge fund manager who made billions shorting mortgage bonds in the years before the financial crisis, is bullish on mortgage credit.

The "worst" bonds, those not backed by Fannie Mae and Freddie Mac, could see gains of 15 percent, he said.


  • Jeff Cox is finance editor for CNBC.com.

  • Lawrence Develingne

    Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.

  • Stephanie Landsman is one of the producers of "Fast Money."

Wall Street

  • Pedestrians pass a Fidelity Investments office in Boston.

    U.S. fund managers have launched a new attack on global regulators as they fight a rearguard action against proposed rules. The FT reports.

  • Jack Bogle

    Jack Bogle, Vanguard's founder, identifies the tenets of mutual fund investing: low fees and high ratings.

  • On the eve of the GOP primaries, here’s the big question: What must we do to restore America’s long-term economic-growth performance?