Teacher's Fund Plans Commercial Mortgage Sale

May 22, 2001 (PLANSPONSOR.com) - Teachers Insurance & Annuity Association-College Retirement Equities Fund (TIAA-CREF) is selling $1.46 billion of commercial mortgage securities, the largest transaction of the year for the $250 billion market.

The securities are expected to be priced this week, according to Bloomberg, citing people familiar with the sale.  They are backed by other commercial mortgage bonds issued by Credit Suisse First Boston in 1997, 1998, 1999 and 2000, according to a report by Standard & Poor’s Inc.

Money managers often re-securitize assets, or repackage investments into new securities, to raise money and boost assets under management. New York-based TIAA-CREF has about $285 billion under management.

According to the report, the fund may keep all but three of the 19 classes of the sale, including a $400 million, “AAA”-rated issue. It may also keep all the lower-rated bonds, while the three “AAA”- rated portions it is selling total $600 million.

– Nevin Adams       editors@plansponsor.com