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They are moving into "sub-prime" lending to less creditworthy borrowers.
And there are various government schemes to relieve pressures on less fortunate borrowers.
Those bonds of less creditworthy borrowers were among the strongest performers in the three months through March.
As interest rates rise, credit cards will probably become more competitive (though they may be pricier for less creditworthy borrowers).
He founded Ameriquest, then the nation's largest lender in the subprime market, which focuses on less creditworthy borrowers.
The deal has drawn criticism from community and consumer groups over Associates' practices in dealing with less creditworthy borrowers.
So they looked for less savvy borrowers — those with less education, without previous mortgage experience, or without fluent English — and nudged them toward subprime loans.
The remaining $325 million will be used to reduce mortgage balances and to forgive outstanding principal on home sales that generated less than borrowers owed on their mortgages.
It is also making it easier for customers to compare interest rates across products and harder for less creditworthy borrowers to spend beyond their means.
Computers enabled lenders to use standardised credit scores, and the risk-spreading from securitisation made it safer to lend to less creditworthy borrowers.
Conventional mutual funds specializing in high-yield, or junk, debt — paper issued by less creditworthy borrowers — have suffered less; as a group, they are down 0.84percentthis yearar through Thursday, according to Morningstar.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com