Tampa Bay and orlando #homes included in #Blackstone's first #rental-backed security deal.
In the first-ever REO-to-rental securitization deal (REO stands for real estate owned) Blackstone is packaging rental income from single-family homes it owns into a pass-through security, similar to a mortgaged-backed security, and seeing who wants some. After New York, the reported $500 million deal’s lead manager Deutsche Bank , along with underwriters JPMorgan Chase and Credit Suisse, take the dog and pony show to Boston tomorrow and Los Angeles on Friday. Even with one rating agency, presumed to be Moody’s, supposedly bestowing the coveted AAA stamp of approval on the deal, investors may have a hard time figuring out if the new asset class is a trick or a treat. It’s easy enough to see why the world’s largest private equity company, after spending close to $7.5 billion amassing a portfolio of 40,000 foreclosed single-family homes it intends to rent, wants to get money out of the “trade,” as Reuters calls the deal. The new securities will likely include some of the homes that we...