Member News

Tuesday’s Activity: Weakness Among European Stocks Sends US Equities Lower, CMBS Modestly Wider

The CMBS market faded in tandem with stocks on Tuesday. US equities opened the day sharply lower after a sell off of European stocks. After fighting back over the course of the day, US stocks ended with only modest losses. The S&P 500 was off 0.29%.

CMBS spreads moved wider on another busy day. About $400 million was out for bid as spreads among legacy super seniors and new issue AAAs moved out a basis point or two. A big block of GSMS 2007-GG10 A4s ($120 million worth) were out for bid late in the day and were being talked in the low- to mid-90s over swaps. At the time we wrote this, we had not yet received any follow up color.

While we are on the topic of GG10s, the $156.6 million Harbor Points Apartment loan was defeased this month, the biggest defeasance thus far in May. The loan represents 3.1% of the total collateral and 53.5% of the multifamily directed class.

The spread on the CMBX 6 AAA was unchanged at 69 and the CMBX 6 BBB- spread was up two basis points to 281.

Compliments of TREPP, LLC – A member of the EACCNY.