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Securitization Quality Declines as Wall Street Revives Issuance

The quality of commercial mortgages being packaged into bonds is declining as sales in that market soar, a Standard & Poor’s analyst said at a securitization industry conference.

“There’s some crap getting done,” David Jacob, an executive managing director at credit-rating company S&P, said today during a panel discussion at the American Securitization Forum trade group’s annual meeting in Orlando, Florida. “It’s surprising to me this early in the cycle that some of that could be happening.”