Last month Goldman Sachs (GS) broke the ice by successfully printing a $400mm CMBS (commercial mortgage backed security) offering for Developers Diversified Realty (DDR). The sale was bolstered the fact that it was eligible for the Government’s Term Asset-Backed Loan Facility (TALF), but the credit markets were heartened as they watched the first CMBS deal in over a year cross the wire. In-fact, demand for the DDR mortgage bonds was so good that Goldman was able to lower the yield premium and sell the deal for more than they had originally anticipated.

Encouraged by Goldman’s success, Bank of America (BAC) brought a deal to market last Thursday (12/3/09) without the benefit of TALF eligibility. The $460mm B of A deal, secured by 44 Florida office and industrial properties that are owned by Fortress Investment Group (FIG), sold at a higher premium than the DDR deal, but it did sell.