Investors appear to have a greater appetite for risk, judging by the increasing complexity of new “private label” mortgage-backed securities not guaranteed by Fannie Mae and Freddie Mac, Bloomberg News reports.

The secondary market for private-label MBS collapsed in the fall of 2007. So far this year, about $12 billion in mortgages — all of them jumbo loans that exceed Fannie and Freddie’s loan limits — have been bundled up into private-label MBS, Bloomberg reports. That’s up from $3.5 billion in all of 2012.

The latest issues  have complex features that “can increase risks for certain investors,” Bloomberg reports, citing a report by Moody’s Investors Service. Source: bloomberg.com

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