The recent (10/22/99) submission of the Bond Market Association's proposal to the Department of Labor to make certain subordinated MBS/ABS/CMBS classes ERISA-eligible could give a much-needed boost to these subordinated sectors. If the BMA's proposals are implemented, a major new source of demand would be created for these securities, while simultaneously providing pension funds with a new array of high yielding investment products. New progress, yes. But this is not a new topic.

The BMA has discussed the issue with the Department of Labor for several years. A draft proposal was submitted by the BMA in April of this year. Their final proposal contained changes suggested by DOL.

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