Colony American Homes rental securitization deal priced wide to positive investor interest.
Moody's provisional ratings of the rental securitization deal was cited by the analysts as one of the reasons for the pricing, noting that it added "institutional credibility" to the deal.
Kroll Bond Ratings and Morningstar also provided similar ratings.
The $513 million deal is composed of REO-to-rental collateral and is only the second such deal to successfully come to market.
The $291 triple-A tranche priced at 120 above LIBOR.
The first deal came from Invitation Homes.
For that deal, Blackstone Group (BX) spent the past two years building its empire of single-family rental homes via subsidiary Invitation Homes, spending $7.5 billion to acquire 40,000 houses. Now, the private-equity firm is planning to sell bonds backed by lease payments, which is a step in a new direction for the housing industry.