Subprime Gains 30% as Goldman, Cerberus Target Market

Growing interest in a diminishing asset has bolstered a rally that’s pushed returns on subprime-backed securities to almost 30 percent this year. Cerberus Capital Management LP and Goldman Sachs Group Inc. (GS) are among firms that have raised money for new funds targeting the bonds, as investors speculate on the real-estate recovery or seek to earn higher returns as the Fed pushes yields on safer debt to record lows.

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