State Street Corp. on Monday announced plans to sell more than $1 billion in stock and notes as the money manager cut its 2009 forecast and said it recorded a $3.7 billion loss from asset-backed commercial paper conduits.

The unrealized mark-to-market losses on the assets, which had a book value of $22.7 billion as of Friday, were the result of State Street consolidating the conduits onto the company's balance sheet. Based on prepayment assumptions, the assets should generate some $475 million in pretax interest revenue this year.

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