Deutsche Bank Opening Rental Bond Spigot to Cerberus
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Blackstone Group LP’s debut sale of bonds backed by rental homes is paving the way for Cerberus Capital Management LP and Colony Capital LLC as Wall Street creates a new market to expand funding for the industry.
Deutsche Bank AG unveiled the $479.1 million deal, which bundles mortgages on 3,207 single-family homes acquired by Blackstone into securities of varying risk, at the Waldorf Astoria hotel in New York yesterday, after spending more than six months structuring the transaction. Almost 60 percent of the securitization received AAA, or top ratings, from Moody’s Investors Service, Kroll Bond Rating Agency and Morningstar Inc.