Blackstone Said to Discuss Rental-Home Bonds With Deutsche Bank

Blackstone Group LP, the private-equity firm that spent $5 billion buying more than 30,000 houses to rent them out, is working with Deutsche Bank AG as it considers creating securities tied to about 1,500 of such properties, according to a person with knowledge of the matter.

The bonds, which Deutsche Bank may begin marketing to investors as soon as next month, could have about $250 million in balances and be backed by $300 million to $350 million in collateral, said the person, who asked not to be named because the discussions are private. The Wall Street Journal reported details of the talks earlier today on its website.