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Goldman Sachs’s Glass-Half-Full CMBS Pace Rally: Credit Markets

As they marketed one of the biggest commercial-mortgage bond deals ever in June 2007, just as credit markets began to crumble, bankers at Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc handed out T-shirts depicting a glass it declared “half full.”

Six years later, after the $7.6 billion of securities plunged in the collapse of the U.S. property market that pushed loans included in the deal into default, the glass is filling up. Portions of the deal that have been cut to junk, which fell to as low as 16 cents on the dollar in 2008, have jumped about 5 cents in the past month to as high as 69 cents, according to traders and investors.