Blackstone's 2nd rental bond offering prices

|About: The Blackstone Group L.P. (BX)|By:, SA News Editor

Supposed froth in fixed income doesn't square with the results of Blackstone's (BX +1.2%) latest rental bonds - ABS backed by the monthly rent on parts of its massive stock of single-family homes. The $108.5M tranche of the $993M deal with the least protection was priced to yield 375 basis points more than a borrowing benchmark, reports Bloomberg, the highest end of the hoped-for range, and 50 bps higher than a similar slice of a deal earlier this month from American Homes 4 Rent.

The top-rated $477.5M tranche priced at 100 bps over one-month Libor - the same as the AMH deal - but all the other tranches came in at wider spreads.