Subprime-Mortgage Market Revives With Investec Issue

Investec Plc, the South African bank, is seeking to revive the market for subprime mortgage bonds in Europe three years after the securities were blamed for the worst financial crisis since the Great Depression.

Investec is selling as much as 130 million pounds ($205 million) of top-rated five-year notes at a yield spread that’s 16 times pre-crisis levels, according to two people familiar with the deal. U.K. buy-to-let specialist Paragon Group of Cos. Plc is also preparing a sale of non-conforming mortgage bonds.