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Property Bonds Slump Most Since ’09 on Slowdown: Credit Markets

Bonds sold by real-estate companies are performing the worst compared with the rest of the market since March 2009 on concern the slowing economic recovery will cause more defaults.

Yield premiums of bonds sold by real-estate investment trusts, shopping-mall owners and office landlords widened 9 basis points, or 0.09 percentage point, more than those on other debt in June, and continued to rise this month, according to Bank of America Merrill Lynch indexes. The worst performers were ProLogis, the largest warehouse developer, and Jacksonville, Florida-based trust Regency Centers Corp.