Member News

Wednesday’s Activity: Stocks End Mixed Following Fed Minutes; CMBS Spreads Widen

Some of you have requested that we compile a list of properties located in areas that may have been impacted by Hurricane Matthew. We took the counties that were listed as Federal Disaster Areas and mapped all properties in those areas to our database.

(For properties in our database, we removed any behind defeased loans or Agency notes.) We believe that the list of loans probably overestimates the number of assets potentially impacted by the storm. Because some of the counties are large and their footprint stretches far from the shore, we believe that many of them escaped unscathed. But, we wanted to give everyone the opportunity to decide for themselves. The list is here: Hurricane Matthew.

Investors spent most of Wednesday awaiting the release of the Fed minutes. The minutes indicated that a short-term interest rate hike would come “relatively soon” (which was no surprise to most investors). US stocks were marginally higher before the mid-afternoon release of the minutes and that is pretty much where they stayed until the closing bell. The Dow rose 16 points (0.09%) while the S&P 500 gained 0.11%. The Nasdaq lost 0.15%.

Cash trading remained light yesterday as less than $100 million was out for bid once again. CMBS spreads moved wider on the day, possibly as a delayed reaction to Tuesday’s equity sell-off. New issue, last cashflow AAA bonds widened one or two basis points while A- spreads moved out about five basis points.

CMBX outperformed cash on Wednesday. CMBX 6/7/8/9 AAA spreads were unchanged while BBB- spreads for CMBX 6/7/9 inched a basis point or two tighter. CMBX 8 BBB- moved a tad wider.

Compliments of Trepp – a member of the EACCNY