Original article by Adam Tempkin
Caroline Chen, senior vice president at Income Research + Management, provided insights in an article for Bloomberg on the growingly competitive housing market. Caroline commented on the single-family rental bond pushback, after asset-backed securities spreads reached historic lows, stating that the structures are more issuer-friendly these days and that in some cases, issuers have been allowed to sell property collateral from the transactions in order to monetize the positive housing price appreciation (HPA). She warned, though, that if prices turn downward, fewer homes backing a loan with negative HPA would change the environment and make it riskier for investors.
