Mortgage-Bond Sales Soar in Sign U.S. Crisis Wounds Healing
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Almost seven years after the financial crisis, bond investors are rediscovering their appetite for new debt tied to the U.S. housing market.
Issuance of home-loan securities that don’t have government backing has accelerated this year to more than $32 billion from $18 billion a year ago, according to data compiled by Bloomberg and Bank of America Corp. This time around, investors are mainly buying types of bonds that weren’t around when the debt helped spark the crash, such as securities tied to defaulted mortgages and rental homes.