Monday, May 21, 2007

Commercial Mortgage Bond Premiums Rise to Highest in More Than Two Years

(Bloomberg) -- Yield premiums on bonds backed by
mortgages for offices, hotels and malls reached the highest in
more than two years because of investors' concerns about lax
lending standards.

The average yield premium for commercial mortgage-backed
securities is 81 basis points, or 0.81 percentage point, more
than benchmark Treasuries, the widest spread since September
2004, according to Merrill Lynch & Co. CMBS are backed by pools
of commercial loans sliced into bonds of different credit
ratings and maturities.


Read more at Bloomberg Bonds News

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