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The bond sale that may solve a US$566b problem

It's the first to comply with new rules regarding commercial mortgage-backed securities

US$871 MILLION ISSUE: Wells Fargo is issuing the bonds, known as WFCM 2016-BNK1, backed by its own loans plus some from Bank of America and Morgan Stanley. All three of the banks are underwriting the securities.

New York

AN upcoming bond sale could determine whether Wall Street banks stay in the US$566 billion business of packaging commercial mortgages into securities.

The nearly US$871 million issue, from Wells Fargo & Co, Bank of America Corp, and Morgan Stanley, would be the first...

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