FeatherStone Investment Group Brings New Innovation To The Rental Income Securitization Market
Investors Receive Income From The Excess Cash Flows After Operating Expenses And Debt Servicing Payments, Yet Are Not Exposed To The Re-Financing Or Collateral Liquidation Once The Short-Term Debt Has Matured.
FEATHERSTONE INVESTMENT GROUP LLC (FSIG) announced today that it is bringing further innovation to the single family rental or rental income securitization market.
They have designed a new class of security within the debt securitization that will allow qualified institutional buyers to participate in the equity-like returns without a long-term capital commitment to the sector. Investors receive income from the excess cash flows after operating expenses and debt servicing payments, yet are not exposed to the re-financing or collateral liquidation once the short-term debt has matured.
This new structuring innovation is anticipated to bring more liquidity to the space as the primary market matures and a secondary market develops. Investors can participate in the equity knowing that their exit from the trade happens at maturity of the outstanding debt. This new Residual Tracking Tranche (“RTT”) that is anticipated to be issued through FeatherStone’s program is expected to have a 3 to 5 year maturity based on the longest issued debt tranche within the deal and will only be available to qualified institutional buyers. The firm anticipates announcing final details of the entire securitized offering in the coming weeks. FeatherStone Investment Group and its strategic partners have built a platform to efficiently source, manage, finance, and package residential properties into a new class of debt and equity investments.
For additional general information about FeatherStone’s program or media inquiries, please contact Mr. Kevin Blaser .
- Contact Information
- Kevin Blaser
- Managing Director, Structuring & Trading
- FeatherStone Investment Group
- (1) 1.888.797.6175, Ext 704
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