TPG Angelo Gordon Spies $2 Trillion Opportunity in Home Equity

Americans borrowing against their homes after a surge in real estate prices are creating a $2 trillion opportunity for investors, according to TPG Angelo Gordon.

“We’re seeing the evolution of home equity products,” TJ Durkin, the firm’s head of structured credit and specialty finance, said in the latest Bloomberg Intelligence Credit Edge podcast. “There could be $150 to $200 billion of origination per year, with a $2 trillion really addressable market there.”

Consumers have seen the value of their residences surge since the pandemic. But rates have risen steeply since 2022, making it less attractive for US homeowners ...