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Ghost of The Big Short Haunts Wall Street


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2016 Dec 26, 7:12pm   3,399 views  6 comments

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With Bespoke Traunch Opportunities (BTOs) and rental-backed securities having been created and traded for a few years now, are we seeing an evolved form of what caused the Great Recession soon to repeat itself?

http://money.usnews.com/investing/articles/2016-05-23/what-is-a-bespoke-tranche-opportunity

Yet that doesn't mean the landscape is absent of schemes. "One that is worrisome is rental-backed securities, where Blackstone Group (ticker: BX) picked up tens of thousands of properties that were foreclosed and spun them out into the rental market."

It translated to Blackstone selling the first-ever single-family rental securitization, a $479 million bond offered in 2013. While that could create substantial profit in cities with rental unit shortages, it also raises inescapable questions.

"What if there are high vacancies and people are late on their payments?" Dayen says. "Or of you have an economic downturn and evictions go up? Is that an issue for the capital markets?"

#housing
#investing

Comments 1 - 6 of 6        Search these comments

1   🎂 Tenpoundbass   2016 Dec 26, 7:35pm  

Two things that's the Idea and Fuck 'em!

2   Strategist   2016 Dec 26, 8:03pm  

Ironman says

just any guy says

are we seeing an evolved form of what caused the Great Recession soon to repeat itself?

Yes!!!

Are you prepared??

Relax guys. Take a vacation, enjoy life, have sex. The next recession is not on the horizon.

3   Strategist   2016 Dec 26, 8:14pm  

Ironman says

Strategist says

The next recession is not on the horizon.

You're right, but the next DEPRESSION is.

Oh God. Why don't you want me to get rich?

4   anonymous   2016 Dec 26, 8:14pm  

Strategist says

The next recession is not on the horizon.

Is this you manifesting a self-fulfilling prophecy? Seems like you're a perma-bull.

5   Strategist   2016 Dec 26, 8:16pm  

just any guy says

Strategist says

The next recession is not on the horizon.

Is this you manifesting a self-fulfilling prophecy? Seems like you're a perma-bull.

Trust me, i was a super bear leading up to the great recession. Late 2011 i became a super bull, and still am.

6   Strategist   2016 Dec 26, 8:21pm  

Ironman says

Be happy, you got a few good years of home price appreciation. We didn't any in three years, home prices have flat lined.

You will get some good appreciation too. Wait for the foreclosure list to dwindle.

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