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Blackstone Said to Face Higher Costs for Rental-Home Bet

It’s getting more expensive to finance and recoup cash from U.S. rental properties for investment firms led by Blackstone Group LP’s Invitation Homes.

Bond investors demanded some of the highest yields since the market started less than a year ago to buy securities backed by the landlord’s houses in a $684 million deal today. The offering included $59.3 million of junior securities paying a yield of 450 basis points, or 4.5 percentage points, more than a borrowing benchmark, a person with knowledge of the matter said.