Wall Street Engineers Awaken CDOs in Real Estate Deals
This article is for subscribers only.
Wall Street’s financial engineers are getting creative again.
Commercial real-estate investor H/2 Capital Partners bundled a hodge podge of its holdings -- from bonds tied to skyscrapers and malls to junk-rated bank loans -- into about $400 million of securities. The deal, similar to the pre-crisis transactions known as collateralized debt obligations, included one portion that Moody’s Investors Service gave its highest rating of Aaa.