The FDIC has put the finishing touches on a five-years-in- the-making plan to securitize its commercial real estate mortgages by issuing $761.4 million in asset-backed securities Aug. 10.

The offering was unique in that its guarantor is the Bank Insurance Fund, with no recourse to the government. However, reflecting renewed investor confidence in the health of the banking industry, the deal was over-subscribed by a large margin, according to Wall Street officials. It was cleared for secondary market trading Aug. 12 and some tranches were expected to trade at a premium, according to several Wall Street traders.

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