New Way to Short Home Loans May Give a Boost to Mortgage-Bond Market

Bloomberg, May 16, 2017–Matt Scully
A new product that would allow investors to short U.S. home loans may kickstart the growth of an infant mortgage-bond market if some money managers have their way. Derivatives on a pricing index that tracks mortgage risk sold by Fannie Mae and Freddie Mac would help banks support the underlying notes.

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