Pursuits
Deutsche Bank Loan Signals Rental Home Bond Dreams
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Deutsche Bank AG is moving closer to turning U.S. rental home payments into bonds, which would be one of the first new types of securitization since the 2008 credit crisis, and pave the way for an infusion of capital.
A $100 million credit facility the bank arranged for investment firm Five Ten Capital LLC is backed by mortgages on rental houses, according to Chief Executive Officer Rob Bloemker. The structure includes separate loans on each property, helping address one concern raised by Moody’s Investors Service and Fitch Ratings, whose blessings could help sell the debt.