Wells Fargo, RBS Said to Sell $1 Billion of CMBS as Yields Fall

Wells Fargo & Co. (WFC) and Royal Bank of Scotland Group Plc (RBS) sold about $1 billion of bonds backed by commercial mortgages after relative yields on the debt fell.

A publicly registered portion with the top credit grades maturing in 9.72 years yields 145 basis points, or 1.45 percentage points, more than the benchmark swap rate, according to people familiar with the transaction. The debt was initially marketed with a spread of 150 basis points, said the people, who declined to be identified because terms aren’t announced.

The lenders sold similar debt in July that paid a spread of 170 basis points, according to data compiled by Bloomberg.

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

To contact the editor responsible for this story: Pierre Paulden at ppaulden@bloomberg.net

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