Real Estate Bonds Entice Goldman as Ford Sells: Credit Markets
This article is for subscribers only.
Goldman Sachs Group Inc. and Citigroup Inc. are attempting to sell the fourth offering of securities backed by commercial mortgages this year as investor sentiment rises toward everything from company bonds to loans.
The extra yield that investors demand to own top-rated securities backed by commercial mortgages rather than Treasuries fell 8 basis points yesterday to 273 basis points, or 2.73 percentage points, the narrowest in more than two months, according to a Barclays Plc index. Ford Motor Co. sold $1.25 billion of notes five days after saying it plans to regain its investment-grade ranking. Loan prices reached the highest since May 20.