(Bloomberg) -- Bonds backed by subprime U.S.
mortgages are rallying as lenders tighten their underwriting
standards and demand increases from managers needing the
securities to fill collateralized debt obligations.
Yields relative to benchmarks on some of the debt have
fallen from record highs in February and March, when investors
fled the securities amid rising delinquencies on home loans made
to people with poor credit. So-called spreads on new BBB rated
bonds have tightened 1.25 percentage points to 2.75 percentage
points in the past month, according to Deutsche Bank AG.
Read more at Bloomberg Bonds News
mortgages are rallying as lenders tighten their underwriting
standards and demand increases from managers needing the
securities to fill collateralized debt obligations.
Yields relative to benchmarks on some of the debt have
fallen from record highs in February and March, when investors
fled the securities amid rising delinquencies on home loans made
to people with poor credit. So-called spreads on new BBB rated
bonds have tightened 1.25 percentage points to 2.75 percentage
points in the past month, according to Deutsche Bank AG.
Read more at Bloomberg Bonds News
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