Home Remodels Are Next Target for Asset-Backed Bond Market
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Loans that homeowners use to pay for fixes or renovations are increasingly being packaged into bonds, and the sector is poised to keep growing as interest rates and home prices stay elevated, according to a report by Kroll Bond Rating Agency.
The bond grader rated $5.8 billion of debt backed by home-improvement loans last year, up about 67% from 2023. With another $2.5 billion rated in the first quarter, volumes are on track to hit a fresh record this year, according to the note published last week.