About 220 home loans packaged into a $72 million bond offering by private-equity firm Lone Star Funds were backed by new loans to homeowners with riskier credit profiles in which the government didn't take at least some of the default risk.
August 14, 2015 at 12:00 AM
1 minute read
It was a small deal—about 220 home loans packaged into a $72 million bond offering—but it’s looking like a post-crisis milestone.
That’s because the securities created by private-equity firm Lone Star Funds were backed by new loans to homeowners with riskier credit profiles in which the government didn’t take at least some of the default risk.
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