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.

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  • DeepValueLover
    , contributor
    Comments (11388) | Send Message
    Beware of "leap before you look" financial innovation!
    6 Dec 2013, 06:23 PM Reply Like
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