REO-To-Rental Bonds Make Slow Arrival On Wall Street

Law360, New York (November 16, 2012, 12:00 AM EST) -- Four years after mortgage-backed bonds tipped the economy into recession, Wall Street is eyeing a new product, backed by lease payments from foreclosed homes turned into rentals. But so far, it's been a waiting game as lawyers, bankers and ratings agencies grapple with risks and try to avoid a repeat of 2008.

All three major credit-rating agencies say they've been approached in the past six months about an issuance, and lawyers and bankers say they're actively talking to clients. But nobody has pulled the trigger yet,...
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