Commercial mortgage backed securities gain

The most recent niche in the asset-backed universe to spurt: The commercial mortgage-backed securities market. These securities have become increasingly popular for Wall Street bankers looking to offer clients the cheapest possible financing. Leveraged buyouts have traditionally been financed with high yield bonds and loans. But CMBSs have entered the picture. Higher proceeds, lower debt costs and fewer covenants than more traditional junk bond financings are commonly touted as the reasons for all this. Bankers continue to tinker. Steve Roth, CEO of Vornado Realty, and Eddie Lampert, head of ESL Investments are seen as the pioneers. They looked at the likes of Alexander's, Kmart and Sears and saw the real estate potential. One interesting test case is casinos.

For more:
- here's an article from Investment Dealers' Digest (For FierceFinance readers)