CMBS Spreads Snap Back
March 23, 2016
In the sector’s first good news in months, CMBS spreads tightened dramatically this week amid a big rally in the broader bond market.
The benchmark bonds of the latest conduit deal were being marketed a whopping 30 bp tighter than comparable long-term, super-senior paper in the previous transaction, which priced two weeks ago. The asking CMBS spreads were also significantly tighter on the subordinate investment-grade classes. As final pricing neared yesterday, the whole transaction, WFCM 2016-C33, was heavily oversubscribed.
While the huge price jump suggests that the market has retracted its entire decline this year, traders and investors cautioned against drawing such a sweeping conclusion.
(via CMA)