Morgan Stanley Dean Witter & Co. said it sold $205 million of commercial mortgage-backed securities that it held as collateral for loans to Criimi Mae Inc., which filed in October for reorganization under Chapter 11 of the bankruptcy code.
The sale met with weak investor demand, in part because ofconcerns about Criimi Mae's viability, investors said.
Morgan Stanley priced the two bond classes at yields about double the current premium for similarly rated bonds from solvent issuers. Morgan Stanley bought some of the bonds that were not sold to investors, but declined to say how much it bought.
Criimi Mae, of Rockville, Md., was the largest buyer of below- investment-grade commercial mortgage issues until its bankruptcy filing.