A new bond offered by the investment firm Blackstone, the U.S.’s largest investor in single-family home rentals, will be based on rental homes and provide investors a return based on rents and possibly more if they’re sold.

“It is a new asset class, so we want to make sure that the sponsor that has invested the equity is going to be able to collect rents, rerent these properties in a fairly short time period and be very efficient about operations,” Bryan Whalen, managing director of U.S. fixed income at TCW, told CNBC. “The better they are at operations, the more protected we are as bondholders.”

Blackstone, which has yet to name the bond, has bought up approximately 32,000 homes for $5.5 billion, according to a September report from financial services firm KBW.

Source: CNBC

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