PowerShares filed to launch two ETFs that would cover bonds back by pools labeled as “prime” and “alt-a” mortgates, writes Ian Salisbury for The Wall Street Journal. It is thought that the new ETFs would revive the market for these securities by opening this area up to small investors. This idea recieved renewed interest after Treasury Secretary Timothy Geithner announced something like this.
Back in October, Mark Cuban had also suggested bundling up toxic assets in a similar manner.
Max Chen contributed to this article.