Financial Times FT.com

First issue under CMBS plan sells well

By Nicole Bullock in New York

Published: November 16 2009 22:58 | Last updated: November 16 2009 22:58

Developers Diversified Realty, an Ohio-based owner of shopping malls, on Monday sold the first commercial mortgage bonds under a government scheme to boost lending to the troubled sector.

The deal drew strong demand and came at low yields, which bodes well for the availability of new loans for commercial property. But investors and analysts stressed that existing mortgages from the boom years remain a problem.

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