(Bloomberg) -- The business of bundling riskier U.S. mortgages into bonds without government backing is gearing up for a comeback. Just don’t call it subprime.
Hedge fund Seer Capital Management, money manager Angel Oak Capital and Sydney-based bank Macquarie Group Ltd. are among firms buying up loans to borrowers who can’t qualify for conventional mortgages because of issues such as low credit scores, foreclosures or hard-to-document income. They each plan to pool the mortgages into securities of varying risk and sell some to investors this year. JPMorgan Chase & Co. analysts predict as much as $5 billion of deals could get done, while Nomura Holdings Inc. forecasts $1 billion to $2 billion.
LAS VEGAS—Net-zero homes are going mainstream, if the home-building industry has anything to do with it.
The homes, which generate more electricity in a year than they use, have long been viewed as a niche product for the affluent who can afford custom homes. The chief problem is that it is expensive to get a home to net-zero status, and many customers aren’t willing to wait several years for their electricity-bill savings to cover the thousands of dollars they would have to spend on net-zero features such as solar panels and energy-efficient windows, doors and appliances.
But some builders, motivated by what they deem as rising demand from home buyers and state and local regulators, are aiming to change those perceptions by designing such homes for the mass market. Such a model home—the latest in the National Association of Home Builders’ annual New American Home series showcasing new-home designs —is on display this week in a hillside neighborhood 7 miles from the Las Vegas Strip as part of the trade group’s International Builders Show.