BofA, Morgan Stanley To Sell Commercial Mortgage Debt

f America and Morgan Stanley both plan on selling securities backed by commercial mortgage bonds, [link=][u]Bloomberg News[/u][/link] reports. Bloomberg's sources, who requested anonymity on the basis that the deals' terms have not been made public, say Bank of America is marketing $368 million in debt (backed by nine commercial mortgage bonds). Morgan Stanley is reportedly trying to sell $210 million in securities backed by a single bond. Some of the debt being included in the offerings are AAA-rated, according to sales documents, and one analyst suggests this is the beginning of a trend. ‘This could be the start of something you see more of,’ Eric Johnson, president of 40/86 Advisors Inc., told Bloomberg. ‘It will get more interesting when these deals use bonds that are rated below AAA.’ SOURCE: Bloombe


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