Mortgage Bond That Vanished During Financial Crisis Is Back

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Mortgage Bond That Vanished During Financial Crisis Is Back
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Private-equity firm Cerberus has issued bonds backed by home-equity lines of credit, which disappeared during the financial crisis

Cerberus Capital Management LP is bringing back a type of mortgage bond that went extinct during the financial crisis.

A unit of the private-equity firm issued bonds Friday backed entirely by home-equity lines of credit. The $174 million issuance received a triple-A rating from four agencies including Fitch Ratings.

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