wall street is diving back into the business of turning home loans into bonds injecting new competition into a market long dominated by governmentbacked mortgage giants fannie mae and freddie mac  the socalled privatelabel mortgage market—in which financial firms serve the middleman role of creating giant pools of loans and selling them to investors—had more than 42 billion of issuance in the second quarter that is the most since the pandemic started and almost the most for any quarter since the last financial crisis according to inside mortgage finance an industry research firm this market still made up a mere 4 of all mortgage bonds issued last quarter fannie mae and freddie mac which issue bonds that come with a federal guarantee that investors will get paid remain the industry’s dominant players but mortgage investors expect the private market to keep growing as a repository of loans that fannie and freddie can’t or won’t purchase such as those tied to investment properties superexpensive homes or selfemployed borrowers recent issuers include goldman sachs group inc morgan stanley and jpmorgan chase  co as well as a growing array of banks and realestate firms as it has become more liquid in recent months the privatelabel market has piqued the interest of more money managers who are searching for yield in an era of rockbottom rates privatelabel securities typically offer higher yields than those issued by fannie and freddie since they don’t come with a government guarantee that investors get paid