f America and Morgan Stanley both plan on selling securities backed by commercial mortgage bonds, [link=http://www.bloomberg.com/apps/news?pid=20601103&sid=aTR.Uu22hGSU][u]Bloomberg News[/u][/link] reports. Bloomberg's sources, who requested anonymity on the basis that the deals' terms have not been made public, say Bank of America is marketing $368 million in debt (backed by nine commercial mortgage bonds). Morgan Stanley is reportedly trying to sell $210 million in securities backed by a single bond. Some of the debt being included in the offerings are AAA-rated, according to sales documents, and one analyst suggests this is the beginning of a trend. ‘This could be the start of something you see more of,’ Eric Johnson, president of 40/86 Advisors Inc., told Bloomberg. ‘It will get more interesting when these deals use bonds that are rated below AAA.’ SOURCE: Bloombe
