Lone Star Deal Marks Return of Risky-Mortgage Bonds in the U.S.

It was a small deal -- about 220 U.S. home loans packaged into a $72 million bond offering -- but it’s looking like a post-crisis milestone.

That’s because the securities created by private-equity firm Lone Star Funds were backed by new loans to U.S. homeowners with riskier credit profiles in which the government didn’t take at least some of the default risk.