Investors in Blackstone Group LP’s debut sale of bonds backed by U.S. rental homes are agreeing to accept more risk than in traditional mortgage deals by at least two measures -- along with an unproven business.
Steve Schwarzman’s Blackstone Group LP has spent $7.5 billion acquiring 40,000 houses in the past two years to create the largest single-family rental business in the U.S. The private-equity firm is now planning to sell bonds backed by lease payments, the latest step in turning a small business into a mature industry.
Individual investors are buying record amounts of notes betting that Brazil’s real will continue its world-beating advance amid speculation the Federal Reserve will keep pumping money into the global economy into 2014.
Jefferies Group LLC, the New York- based investment bank, hired Robert Keller from Deutsche Bank AG as a managing director to trade investment-grade credit, according to three people with knowledge of the matter.
Deutsche Bank AG designed a derivative for Banca Monte dei Paschi di Siena SpA at the height of the financial crisis that obscured losses at the world’s oldest lender before it sought a taxpayer bailout.