The markets for nonagency mortgage bonds is booming.

But how much money do well-placed investors stand to get?

For those who stood by subprime bonds patiently for the last few years, they stand to make a killing.

Thomas Zimmerman of UBS Investment Bank said during a conference at the American Enterprise Institute his nonagency portfolio of subprime, alt-A and options ARMs from the 2006-2008 vintages are doing very well. “Six months ago some of these securities traded at $30, now they are $90 or $80. Investors can’t get enough of them,” he said.

Is a bond bubble forming? Watch below to find out.