Wall Street CMBS Allure Fades as Volatility Surges: Mortgages

Wall Street’s on-again, off-again love affair with commercial-mortgage-backed securities is on the rocks as markets get whipsawed by Europe’s debt crisis.

Goldman Sachs Group Inc., Deutsche Bank AG and other banks sold $2.4 billion of new deals this month with the widest spreads this year. An index tied to lower-rated bonds issued before the financial crisis fell 7.4 percent to 56 cents on the dollar, approaching the lowest level in almost six months.