Beaten-Down Subprime Mortgage Bonds Offered a Decade of Gains

Bloomberg, Oct. 1, 2018–Claire Boston
Fund managers that took a chance on beaten-down mortgage bonds sometime after Lehman Brothers collapsed have seen their money swell as the housing market has recovered. Home loans for even troubled consumers have turned out to be more solid than many investors had feared: borrowers that weathered the downturn are diligently paying their obligations and defaults at this stage are infrequent.