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Friday’s Activity: Stocks Back in the Win Column; CMBS and CMBX Spreads Narrow

After a brief timeout on Thursday, US stocks resumed their winning ways on Friday. The Dow gained 54 points (0.29%) while the S&P 500 and Nasdaq added 0.46% and 0.52%, respectively. The 10-year Treasury yield was unchanged, ending at 1.57%.

CMBS cash trading was quiet on Friday as less than $100 million was out for bid. Cash spreads continued to grind tighter and outpaced CMBX as it did for the majority of last week. For new issue, AAA cash paper, spreads narrowed another basis point while BBB- spreads tightened five basis points.

CMBX 6/7/8/9 AAA spreads were flat on Friday, while CMBX 6/7/8/9 BBB- spreads tightened a basis point or two. As we noted last week, the difference between cash and CMBX spreads narrowed throughout last week. This closing of the gap bucks a trend from the previous month where CMBX spreads tightened much faster than cash.

Compliments of Trepp LLC. – a member of the EACC NY