Wall Street will securitize $2 billion of home-equity loans this month, and because of the way the deals will be structured, either start a trend or set a time bomb ticking.

"The door is definitely open" for either possibility, said Catherine Needham, managing director of the structured finance group at Moody's Investors Service, New York. "It will depend on who rushes in, and how many times."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.