Bloomberg News

Deutsche Bank Markets $191.3 Million of CMBS Tied to Malls

December 12, 2011

(Updates with expected rating in second paragraph.)

Dec. 12 (Bloomberg) -- Deutsche Bank AG is marketing $191.3 million of bonds tied to a commercial property loan, according to data compiled by Bloomberg.

The debt is backed by mortgages on malls in Gainesville, Florida, and Omaha, Nebraska, Bloomberg data show. The securities, of which $114.6 million are expected to be rated AAA by Moody’s Investors Service, mature in about one year.

Wall Street banks arranged about $28 billion in bonds backed by commercial mortgages this year, compared with $11.5 billion in 2010, Bloomberg data show. Issuance peaked at $232 billion in 2007.

The extra yield investors demand to own top-ranked commercial-mortgage bonds rather than Treasuries has risen to 259 basis points from this year’s low of 178 basis points on April 26, according to a Barclays Capital index. The spread has narrowed from 323 on Oct. 4, the widest since February 2010.

--Editors: John Parry, Alan Goldstein

To contact the reporter on this story: Sarah Mulholland in New York at smulholland3@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus