... several companies, including Blackstone, are packaging their [single family rentals (SFRs)] into bonds similar to the mortgage backed securities that fueled the financial crisis.

Like those securities, SFR bonds are backed by homes; but this time rental payments, rather than mortgage payments, pay the interest. Securitisation frees up money, allowing big buyers to purchase more properties with less capital by increasing their leverage -- and risk.


Last year, two senior Federal Reserve economists warned institutions could "have difficulties managing such large stocks of rental properties or fail to adequately maintain their homes."

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