Member News

Wednesday’s Activity: Cubs Win, Everyone Else Loses

Perhaps it was fitting that in a year where the UK voted to withdraw from the EU and the US has witnessed the most inexplicable presidential campaign in memory that the Chicago Cubs would finally win the World Series. (As Bill Murray says in Ghostbusters: “what comes next? Dogs and cats living together?”)

The Cubs overcame the Maddon-ness of King Joe (some questionable decisions by skipper Joe Maddon) to finally end the 108-year drought. So after all that, what could be next? A Jill Stein presidency?

While the Cubs were ending their losing streak, the S&P 500 was not. That index suffered its seventh straight down day, the longest run since 2011. The S&P 500 lost 0.65%, while the Nasdaq whiffed by nearly 1% and the Dow shed 77 points (0.43%). In the process, the S&P 500 and Dow fell below 2,100 and 18,000, respectively, for the first time since early July. A December Fed rate hike, falling oil prices, and the uncertainty over the election were said to be weighing on the markets.
The CMBS market was quiet ahead of Wednesday’s Game Seven, as only about $70 million was out for bid. Cash spreads moved modestly wider up and down the credit stack.

CMBX underperformed cash on Wednesday. Spreads for CMBX 6/7/8/9 were wider by one to three basis points. CMBX 6/7/8/9 BBB- spreads were out about two to seven basis points.

Compliments of Trepp – a member of the EACCNY