Participants at ABS East held forth on value opportunities in securitization and how increases in interest rates, loosening underwriting standards and the debt ceiling stalemate ought to inform investor behavior over the short-to-medium term.

“One area that’s going to be exciting in securitization is buy-to-rent,” said Ron Mass, a managing principal at Almitas Capital. Once it materializes, he said, the sector will likely have double the credit enhancement of similar products, as the rating agencies tend to be conservative with new products. And yet the new issue spread will likely beat commercial mortgage-backed securities, he added.

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