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 ImagesThis article is for subscribers only.
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.