Lehman Brothers' inclusion of commercial mortgage-backed securities in its aggregate bond index starting this Thursday is the latest, and some sources say the most significant, in a number of changes that are revolutionizing the CMBS market.

With the addition of CMBS to the index, many index funds and pension funds will have the incentive to purchase commercial mortgage securities for the first time. In addition, a buy side that has heretofore lived on a scarce diet of data now finds itself contending with a surfeit of new CMBS indexes and information from Wall Street firms. Further, such shops as Lehman and Goldman, Sachs & Co., among others, stand to benefit from the higher profile that the market is attaining by offering options like swap programs and model portfolios to newcomers who want the returns of CMBS without managing the risk.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.