The spreads were "pleasantly tight" for the sold-out Developers Diversified Realty sale of $400 million of debt secured by commercial mortgages, said James Grady of Deutsche Asset Management. The offering, backed by lead underwriter Goldman Sachs Group, was the first new CMBS issue to make use of attractive government financing under the Federal Reserve's Term Asset-Backed Securities Loan Facility. The transaction was closely watched because the CMBS market effectively shut down after the credit crunch hit.

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