Commercial-Mortgage Bonds Slide as $9 Billion Weighs on Market
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Commercial-mortgage securities are slumping as a flood of bonds dumped on the market during the past month weighs on values amid mounting concerns that Europe’s debt crisis can’t be contained.
Relative yields on top-ranked debt tied to property loans have climbed 14 basis points in May to 200 basis points more than Treasuries, the highest level in more than a month, according to a Barclays Plc index. Bonds that are perceived to be of lower quality were pressured the most, Credit Suisse Group AG analysts said in a report today.