By Jeannette Neumann | The Wall Street Journal
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 -1.42% 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.
Blackstone and other firms have spent billions buying homes and renting them.
The bond comprised of the Blackstone homes would be structured and marketd to investors by Deutsche Bank AG, DBK.XE +1.61% 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.
