- When Blackstone (BX +1%) in November launched the first-ever securitization of single-family rental payments, the top tranche of the $479M deal priced at just 115 bps over Libor and was 5x oversubscribed, but that aggressive pricing could come back to haunt.
- After trading in the secondary market at above face value for the last three months, one dealer recently offered the riskiest slice at below par.
- Institutional types have spent about $20B for 150K homes since the crisis and are now looking to monetize or at least get a return on that investment. “Now that there’s been a ground swell of purchasing properties, are we now not seeing the major funds trying to offload," one securitization conference attendee recently asked Deutsche's Ryan Stark - one of those who put together the Blackstone deal.
- Blackstone's been going gangbusters of late as single-family housing is but a small slice of its business, but the performance of pure-play rental shops - SBY, AMH, ARPI - leaves something to be desired. A new entrant - Starwood's SWAY - began trading yesterday.