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user-inactivated · 3785 days ago · link · · parent · post: How Wall Street fucked up the housing market AGAIN
Unbelievable. I mean this is just...The bondholders should be fine – at least some of them. Like mortgage-backed securities, rental securities are purchased in tranches. The senior bondholders in the highest tranches get paid first with the rental revenue streams, while the junior bondholders in the lowest tranches must wait. They get a higher potential reward for taking on more risk, but with vacancy rates growing, they will likely lose money on the deals.