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Subprime is no longer a dirty word

Subprime-mortgage debt delivers some of the bond market's best returns, gaining 12% this year or six times more than junk-rated corporate debt.

A SIGN LESS SEEN: With the economy poised to grow at the fastest rate in a decade and home values rising for a third year, subprime investors are being rewarded as the wave of foreclosures on the worst loans subsides.

REMEMBER when nobody wanted to touch US subprime-mortgage debt? That is just a distant memory as it delivers some of the bond market's best returns. The securities that were created in the years leading up to the financial crisis in 2008, the last time when such notes were issued, have gained...

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