Wall Street securitization machine revving back up

|By:, SA News Editor

Blackstone (BX) and Deutsche Bank (DB) are in "detailed discussions" to create and sell the first-ever bond backed by home-rental payments, reports the WSJ.

The initial product would bundle monthly rent checks on 1.5K-1.7K homes owned by Blackstone; the size of the deal would be about $240M-$275M.

Needless to say, many are wary about the speed with which thousands of homes have been purchased by Blackstone and other Wall Street firms looking to create an institutional product out of what has been a mom and pop industry forever.

Word is Greg Zuckerman is busily putting together a book proposal for The Greatest Trade Ever Part II - about a hedge funder 5 years from now who makes a ridiculous fortune shorting this paper.