Three weeks into the third quarter, two CMBS conduits were priced last week. The $1.2 billion MSC 06-TOP23 transaction priced on Wednesday and the $2 billion BACM 06-3 deal on Thursday. These pricings are the first ones for the month of July, since the last deals that priced prior to these were in the last week of June. The month of June saw a record-setting $24.1 billion in deals, making the initial dearth in July more obvious.

Pricing spreads, on average, continue to recover from some June weakness that filtered into the credit sectors, including CMBS, which was looking at a large pipeline for the month. Specifically, the 10-year triple-A senior class on TOP 23 priced one basis point better than GCCFC 06-GG7, which was the last conduit priced in June. Lower investment grade issues showed further strengthening with BBB+ and BBB' tranches improving five basis points to 65 and 70 basis points over swaps, respectively and

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