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This Bond Sale May Solve Wall Street’s $566 Billion Problem

  • Wells Fargo issues first CMBS that meets Dodd-Frank rules
  • Banks depend on debt issuance to fund real-estate lending
on March 11, 2015 in New York City.
Photographer: Spencer Platt/Getty Images
Updated on

Bonds sold on Thursday could determine whether Wall Street banks stay in the $566 billion business of packaging commercial mortgages into securities.

The nearly $871 million issue, from Wells Fargo & Co., Bank of America Corp., and Morgan Stanley, is the first to comply with new rules designed to make commercial mortgage-backed securities safer for investors.