6/8/2010

JPMorgan Chase might have to pay higher yields to sell more than $700 million in bonds backed by commercial-property loans than Royal Bank of Scotland paid on a similar issuance earlier this year. JPMorgan, Bank of America, Goldman Sachs and Deutsche Bank have been striving to revive the market of commercial mortgage-backed securities by writing loans that will be packaged into bonds. However, wider spreads might discourage banks because they don't want to be stuck with debt if the market becomes illiquid again, said Joshua Meyers of Hexagon Securities.

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