Pursuits
Blackstone to Colony Face Rental-Bond Glut as Yields Rise
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Bond investors are wresting higher yields from landlords in the fledgling business where U.S. rental homes are financed by credit markets.
As the supply of debt backed by mortgages on homes for rent overwhelms demand, yields on the riskiest portion of the deals climbed last week to 5.3 percentage points over benchmark rates from 4 percentage points in early August, according to Bank of America Corp. The first of these securities were sold last November by Blackstone Group LP’s Invitation Homes at a spread of 3.65 percentage points for the lowest-ranked piece.