Invitation Homes’ new single-family rental securitzation is largest ever | 2015-06-08 | HousingWire
[{"id": "cs0q7xi", "text": "&gt; Both Morningstar and Kroll Bond Rating Agency issued presale reports for the record-breaking offering, and both awarded AAA ratings to the offering\u2019s $541.33 million Class A tranche.\n\nOh shit, this sounds waaay too familiar. \n\nNext month there will be a similar article that says \"The synthetic CDO squared deal was brokered by Goldman Sachs. Moody's awarded every tranche a AAA rating.\" \n", "replies": [{"id": "cs14dd5", "text": "I thought the same thing exactly. So does this mean we start buying the credit default swaps now?", "replies": [], "depth": 2}, {"id": "cs1qgvi", "text": "This is for rental homes, not owner/user single family mortgages. This was investment type didn't exist in 2007 (the first issuance was by Blackstone in 2013).", "replies": [], "depth": 2}, {"id": "cszsgjx", "text": "No there won't because generally Moody's has a backbone, and isn't chasing market share the way Kroll, DBRS, Morningstar, and even S&amp;P now are.", "replies": [], "depth": 2}], "depth": 1}, {"id": "cs1d1xu", "text": "A two+3 I/O floater doesn't make sense for this type of collateral in today's rate environment. I can't imagine the subordination provisions @ AAA... would like to better understand the deal structure. Seeing these trade inside 110 bps over 1 month libor. 35-45 bps over 2 year treasury is apparently a sweet spot for somebody on this wierd planet. \n\nAs for the rest of the alphabet soup... does the spread even matter? Legal fee's alone could wipe out a whole traunch.  \n\nHousingWire are you serious with that typo? \n", "replies": [{"id": "cs1qlqv", "text": "You don't have to imagine - subordination to AAA is 55%. What type of legal fees are you referring to?\n\n", "replies": [{"id": "cs1sn3m", "text": "Edit: Subordination provisions. Structured pass thru's are complex securities. I have little working knowledge of SFR securitizations but can only assume they basically mimic CMBS execution. Do you happen to know who was buying senior levels of prior I-H securitizations?\n\nLegal fee's, turns, etc (exaggerated)... Basically all of the operating expenses that have historically made SFR's a poor investment vs conventional multifamily rentals. \n\n\n ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]