Hedge-fund manager Kyle Bass, who made $500 million shorting subprime mortgages during the 2007 crash, said he’s now betting half his firm’s money on a rebound in those assets.
Securities tied to the riskiest mortgages are virtually “bullet-proof,” because even if the U.S. housing market declines by 10 percent, investors won’t take a principal hit on their bonds, Bass said in an interview with Bloomberg Televison’s Stephanie Ruhle on Market Makers. The assets offer a “very safe place” to make double-digit returns, he said.
