Deals
Cerberus Said to Shelve Commercial Mortgage Bond That Mimics CDO
- Investors wanted higher yields on $390 million offering
- Rating company DBRS Morningstar never graded the transaction
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Cerberus Capital Management has shelved the sale of a $390 million commercial mortgage bond that packaged nearly junk-rated securities into new debt with top AAA grades, according to people with knowledge of the matter.
Investors were demanding higher yields for the debt offering, said the people, who asked not to be identified because the information is private. The bond sale also struggled because of weak liquidity, and changing terms in the so-called repo market, they added.