Finding Losers From Oil Leads JPMorgan to Texas: Credit Markets

Wondering how far the drop in oil prices threatens to ripple across credit markets? Take a look at the nascent market for bonds backed by U.S. rental homes.

Of the properties that were packaged into $531 million of such securities issued by Starwood Waypoint Residential Trust last month, 28 percent of them are located in one of the 10 U.S. metropolitan areas with the most jobs from oil and gas exploration, according to JPMorgan Chase & Co. analysts. Three deals from American Homes 4 Rent, the landlord founded by self-storage billionaire B. Wayne Hughes, have at least 15 percent of their collateral concentrated in oil-producing regions.