Resolution:
Characters such as "<" and "&" are illegal in XML elements. XML specifications provide two approaches to address this.

1). Have unparsed characters escaped. Example:  "&" --> "&", "<" --> "<".

2). Embed the string with unparsed characters in a CDATA section. Example:  <![CDATA[<greeting>Hello, world!</greeting>]]>

For incoming messages, TIBCO AMX SOAP Binding is able to accept both approaches. For outgoing messages, TIBCO AMX SOAP Binding chooses to escape unparsed characters. There is not an option to make CDATA used. It should not be a problem as any third party vendor complies to the W3C XML specification and should be able to parse unparsed characters escaped in a standard way.