The deals are starting to pile up in the CMBS realm after a brief hiatus coming off the record issuance in the second quarter. Three conduit deals seen in July for a total of $4.8 billion were far below the 2004 monthly average of $6 billion and significantly under June's $8.3 billion.
This, however, is about to change. Last week brought at least three conduits totaling $3.7 billion, which along with the Aug. 3 GMAC 2004-C2 pricing put August supply at an expected $4.6 billion by mid-month. And another $3 billion or so is still in the pipeline before September.
The newest deals include a $1.3 billion Lehman Brothers/UBS offering named LBUBS 2004-C6, a $716 billion Morgan Stanley-led MSC 04-IQ8 deal, and a $1.6 billion CSFB 04-C3 from Credit Suisse First Boston deal.
Spreads are still feeling the impact of last month's $2.6 billion Goldman Sachs/Greenwich Capital Markets deal that injected over $1.4 billion in triple-A 10-year paper into the market. GMAC saw the triple-As 10-year paper in its transaction priced at 36 basis points over swaps, wide of the first-quarter average of 33 basis points and wide of reported secondary levels at 34 basis points over. As of press time, guidance is not yet available for this week's slate, but spreads should remain under pressure and were expected to come near the GMAC levels.
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