Wall Street's largest investment banks have found a way to profit once again on subprime mortgages originated before the 2008 financial crisis.

On Tuesday, BlackRock managed an auction of $7 billion of various assets for a European bank (one of the largest such sales in over a year). The auction included $4.6 billion in U.S. mortgage-backed securities, many of them issued during the heady days of 2006 and 2007 or earlier. Credit Suisse was among the major winners.

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