…though some have very limited markets that are truly appropriate. Balloon mortgages, floating-rate mortgages with (and without) long-term caps, or even IO mortgages make sense for a small subset of…

…securities. In the first quarter of 2005, loans in private-label mortgage securities accounted for 14.4 percent of all outstanding residential mortgage loans, up from just 9.7 percent in 2003, according…