Strike Three: Moody’s Weighs In on Rating SFR Securities

Strike Three: Moody’s Weighs In on Rating SFR Securities A week ago the third of the three major securities rating services weighed in with its views on how it will rate the risk involved with securities backed by single family rental contracts.  Moody’s report wasn’t good news for the hedge funds counting on a secondary market in SFR contract-based securities to generate cash flow for their business models.In May, Standard & Poor’s report began by outlining the advantages of … [Read more...]

The Rush to Securitize Single Family Rentals: The Fitch Report Changes the Rules

The Rush to Securitize Single Family Rentals: The Fitch Report Changes the Rules Many of the key points made in last week’s Fitch Ratings Report on REOs to Rentals (See How Ratings Could Dramatically Change the Single Family Rental Business) were not new or surprising.  However, seeing them in black and white under the letterhead of one of the most powerful ratings agencies in structured finance changed the rules and probably the timetable for the birth of SFR securities−bonds created by … [Read more...]