Commercial-Mortgage Index Jumps on BlackRock Estimate
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An index tied to commercial property debt soared to the highest level in more than two years after BlackRock Inc. projected losses on the securities won’t be as severe as investors expected.
The price of a Markit Group Ltd. CMBX index linked to junior AAA commercial-mortgage bonds, many of which have had ratings cuts, increased as much as 1.75 percentage points to 77.46 yesterday. Credit-default swap contracts on the index, which rises as investor confidence improves, are trading at the highest level since September 2008, the data show.