Most of Developers Diversified Realty Corp.'s (DDR) planned $400 million commercial mortgage bond sale, the first new commercial mortgage-backed security in over a year, may be executed at yields ‘well below existing levels,’ according to a Reuters report that cites Thomson IFR.
Bloomberg reported earlier this week that Goldman Sachs is underwriting the bonds, which are backed by 28 DDR-owned properties. The deal is being sold under the Federal Reserve's Term Asset-Backed Securities Loan Facility.
According to Reuters, IFR's reports that the $323.5 million AAA-rated piece of the deal will sell at an approximate yield of 4.21%.
‘Underwriter Goldman Sachs at midday lowered the yield premium from a range of 1.6 to 1.75 points, indicating it was seeing good demand from investors,’ Reuters says.