Written by Joe McBride, Research Analyst
Dusting off their desks after hibernating through the polar vortex, CMBS traders came back to life this week and the first conduit deal of the year met strong demand and tighter spreads. Ten year AAA super seniors in COMM 2014-CCRE14 priced at 87 bps over swaps, six bps tighter than the last deal done in mid-December. Higher treasury rates along with more traders at their desks contributed to the compression according to Commercial Mortgage Alert. The BBB- slice went for 360 bps, compared to talk in the 385 area and recent deals as wide as 410.
Dusting off their desks after hibernating through the polar vortex, CMBS traders came back to life this week and the first conduit deal of the year met strong demand and tighter spreads. Ten year AAA super seniors in COMM 2014-CCRE14 priced at 87 bps over swaps, six bps tighter than the last deal done in mid-December. Higher treasury rates along with more traders at their desks contributed to the compression according to Commercial Mortgage Alert. The BBB- slice went for 360 bps, compared to talk in the 385 area and recent deals as wide as 410.
US equities on the other hand stumbled out of the gate in the first full work week of the year. The Friday jobs report loomed over a choppy and relatively flat stock market all week. Job growth hit the brakes in December according to the report, although investors seemed unsure of how to interpret the number and its relation to economic growth and Fed tapering. One beneficiary of the report was the US ten year treasury which tightened 11 basis points on Friday, ending the week at 2.86%.
If you're going to the CREFC conference in Miami, make sure to stop by our hospitality suite or (for the more adventurous types) our cabana by the Arkadia pool.
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Volume
|
GG10
|
CMBX 6 AAA
| |
Monday
|
$30 m
|
169 bps
|
82 bps
|
Tuesday
|
$40 m
|
169 bps
|
84 bps
|
Wednesday
|
$200 m
|
168 bps
|
84 bps
|
Thursday
|
$400 m
|
168 bps
|
82 bps
|
Friday
|
$200 m
|
168 bps
|
83 bps
|
Legacy AM & AJ Spread Moves Over the Last Year 
Top Credit Stories from the Week
-Charlotte Office to See Largest Tenant Vacate by April (WBCMT 2007-C33)
-Pair of Seattle Area Office Loans to Watch in 2014 (BACM 2005-2 & JPMCC 2007-CB18)
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