Salient to Investors:

Credit-derivatives traders are being replaced by machines as automated trading makes humans too expensive.

Michael Karp at Options Group said that as late as 2005, managing directors on credit-derivative trading desks were being paid an average $250,000 in salaries and $1.75 million in bonuses.

Peter Tchir at TF Market Advisors said building an algorithm may cost a few hundred thousand dollars, and their increasing popularity is an example of how credit markets are becoming more like stocks.

Citigroup said the balance of debt past due tied to skyscrapers, shopping malls and hotels fell to the lowest since April 2010.

Sales of commercial-mortgage backed securities are surging as investors look for higher yields even as slow economic growth threatens to hold down rent and occupancy rates.

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