'Reopening Trade' Jolts Securitized Market as Megadeals Return
- Hertz and Extended Stay America bring largest deals of year
- More large SASB CMBS deals are likely on the horizon: JPMorgan
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Two massive securitizations representing industries coming back from the dead were sold this week, potentially kicking off an era of structured-credit mega deals.
The bonds, backed by cash from the rental-car business and extended-stay hotels and the largest this year, were handily absorbed by an eager investor base this week clamoring for even a modicum of extra yield in a tight credit market. More of these giant deals may be on the way as the pandemic fades in the U.S., market observers say, especially in commercial real estate.