早在2011第三第四个季度和2012年年初，一些看跌的人认为有那么多的银行关闭屋 (so called "shadow inventory")， 上市对房市将会是一个巨大的冲击。Guess what? They were not even put onto the market for individual buyers. They were all bought (bundled) by private equity companies finished around July 2012. They are now for rent!
I found this article in July's Wall Street Journal。Enjoy reading!
I found this article in July's Wall Street Journal。Enjoy reading!
Two major Wall Street firms are in detailed discussions
to create and sell the world's first bond backed by home-rental payments, people
familiar with the matter say.
Blackstone Group LP BX -0.60%is in
negotiations to bundle monthly rental payments on about 1,500 to 1,700 of its
homes. The private-equity giant is among the firms that have spent billions
buying homes out of foreclosure, an investment strategy that has helped to
bolster demand and strengthen the U.S. housing market.
MCT/Zuma Press
Blackstone and other firms have spent billions buying
homes and renting them. Above, a Blackstone-purchased home in Roseville,
Calif.
The bond comprised of the Blackstone homes would be
structured and marketed to investors by Deutsche Bank AG, DBK.XE -0.76%the
people say.
The creation of a new type of security shows that Wall
Street's financial engineering, blamed for deepening the financial crisis, is
revving back up.
Some investors and analysts have said they are wary of a
bond backed by rental payments, citing the dearth of long-term data on how often
tenants living in previously foreclosed homes pay their rent on time.
Also, some investors and analysts have raised concerns
about how quickly firms have purchased thousands of homes, and whether they have
the management track record and expertise to oversee the maintenance of
properties scattered across the country.
But investors still are hungry for the high returns that
are likely to accompany a first-of-its-kind deal, which would be viewed as more
risky than well-known securities.
The size of the Blackstone-Deutsche Bank deal is
expected to be around $240 million to $275 million, the people familiar with the
bond say.
The top-rated slice could receive a rating as high as
single-A or triple-B from some of the credit-rating firms, some of the people
familiar with the deal add.
The deal is expected to be backed by equity and
properties that are worth between $300 million to $350 million, the people
familiar with the matter said.
The deal could be available to investors as soon as
August or September. But the metrics could change as the details aren't
completed, cautioned some of those people.
And Blackstone could still walk away from a
securitization or chose to sell a deal without letter-grade ratings from the
credit-rating firms, say people familiar with the deal.
Spokeswomen for Deutsche Bank and Blackstone declined to
comment.
Blackstone has emerged as the biggest investor in
single-family rental homes, spending more than $5.5 billion since the beginning
of last year to acquire about 32,000 homes in around a dozen major U.S.
markets.
Other companies, such as American Homes 4 Rent, Colony
Capital LLC and Waypoint Real Estate Group LLC also have been snapping up
thousands of foreclosed homes, revamping them and renting them out. American
Homes 4 Rent is expected to price shares of its stock Wednesday in an initial
public offering.
The companies have transformed what has traditionally
been a space for "mom and pop" investors to earn cash into an institutional
investment strategy that has helped to boost home prices in cities across the
U.S. The investment strategy often is known as buy-to-rent.
The structure of the deal would be similar to
better-known securities, such as those backed by home or commercial mortgages.
Securitization is the process of pooling together
assets—whether that is rental or mortgage payments—to back a deal. That deal is
then "sliced" into different layers, or bonds, according to the risk of the
underlying assets and the order in which bondholders will be paid as the
payments from the underlying assets roll in.
Each layer is sold as a "class" of bonds to investors.
The top layer is paid first, then the second and so on. The riskiest slices
offer the highest potential returns.
While securitization got a bad rap because of the losses
investors suffered after purchasing such deals before the financial crisis,
proponents say it can be an effective process to tap the capital markets for
financing by turning thousands of separate cash-generating assets into
bonds.
Analysts have said in recent months that Blackstone and
Deutsche Bank were a likely pairing on an initial rental securitization.
Blackstone's real-estate prowess could quell some
investors' fears about management of the properties, while Deutsche Bank has led
the charge among Wall Street banks offering loans to real-estate firms buying
foreclosed homes.
Deutsche Bank has led the issuance of around $3.6
billion of loans to Blackstone in recent months, coordinating with other major
Wall Street banks. Debt financing allows borrowers such as Blackstone to buy
more properties at lower costs. The sale of a Blackstone-backed securitization
would bring still more money to the company.
An investment-grade rating from credit-rating firms
would allow more investors to purchase slices of the Blackstone-Deutsche Bank
deal than if it were rated lower.
Many investors have internal guidelines that only allow
them to purchase securities rated above a certain level.
Moody's Investors Service, Standard & Poor's Ratings
Services, Fitch Ratings, Kroll Bond Rating Agency Inc. and Morningstar Credit
Ratings LLC are among the firms that have been approached to rate a potential
deal, the people said, but it isn't clear which firms would issue final
letter-grade ratings if the deal closes.
It also isn't clear what returns the deal would offer
investors or which investors would consider buying slices of this new type of
security. Other deals also are in the pipeline, some of the people said, but it
is unclear at what stage.
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