A new product that would allow investors to short U.S. home loans may kickstart the growth of an infant mortgage-bond market if some money managers have their way.
Derivatives on a pricing index that tracks mortgage risk sold by Fannie Mae and Freddie Mac would help banks support the underlying notes, Roman Shimonov, a director at Annaly Capital Management -- one of the largest mortgage-focused real estate investment trusts -- said at an industry conference in New York on Monday.
