GO
Loading...

Enter multiple symbols separated by commas

Subprime Bonds Come Roaring Back

bubble_burst.jpg

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.

Read More...

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.