Seeking Alpha

Rental securitization market set to take off, says Deutsche

  • The single-family rental payment securitization market could be a $5B one next year, estimates Deutsche, which led the first such deal - one secured by rents from Blackstone (BX) rental homes.
  • Deutsche estimates 90K homes have been purchased by institutional investors over the past two years, with Blackstone leading the way, investing about half of the $15B spent. Next up is American Homes4Rent (AMH +2.4%), buying about 19.8K homes for $3.3B, followed by Colony Financial (a unit of CLNY), Silver Bay (SBY +0.2%), Starwood Waypoint (a unit of STWD and prepping to be spun off), and American Residential (ARPI -0.3%).
  • Should the securitization market take off as Deutsche expects, it would provide a sizable new source of cheap financing for these players.
Comments (1)
  • DeepValueLover
    , contributor
    Comments (9626) | Send Message
     
    Beware of "leap before you look" financial innovation!
    6 Dec 2013, 06:23 PM Reply Like
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