StaffWire services
Two more U.S. lenders are supporting bonds backed by private home loans, also known as mortgage-backed securities, reports ft.com.
JPMorgan Chase issued a $616 million bond. It limits how and when it will compensate investors if the underlying loans are fraudulent. Meanwhile, a $308 million bond by EverBank Financial is even riskier, says ft.com, because ratings agencies are wary about the bank’s ability to compensate investors if there is fraud.
It was these types of loans that played a part in the 2008 financial crisis.
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