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How do dealers effectively price bonds when there are no bonds trading in the primary or secondary sectors of the market? One might argue that researching historical default patterns among previously issued bonds would be the place to start. Analysis of those historical trends could lead to a reasonable prediction of future loss levels allowing the bonds to be rated and priced based on that risk. Unfortunately this is not the case in the currently bumpy world of Commercial Mortgage-Backed Securities (CMBS). With the CMBS market recently non-existent, dealers have looked to the...