U.S. home loan bonds without government backing, including 2007 subprime securities with 92% of borrowers projected to default, are better bets than other debt, according to Barclays Capital Inc. analysts.

That's because the originally triple-A-rated subprime-mortgage securities at current prices from 25 cents to 35 cents on the dollar offer yields of 7% to 8%, after considering likely losses of 73% on the remaining loan pools, the analysts wrote in an Aug. 21 report. Depending on the category, some 2007-vintage nonagency mortgage securities offer projected yields up to 16%, they said.

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