Banc of America Securities LLC priced its $771 million commercial mortgage-backed securities transaction last Thursday on a deal that was originally assembled last year.
At the same time, CMBS spreads held up surprisingly well, as they were unched over this period. Though spreads seemed half a basis point wider on the break late last week, one source noted that it doesn't constitute a reassessment of value.
BofA will be bringing another conduit deal by the end of September, sources said, though the pool of loans for that deal was not yet finalized at press time. However, market participants estimate the forthcoming deal to be in the $900 million range.
Meanwhile, last week's Bank of America Mortgage 2000-1 was mostly floating-rate paper with two fixed-rate tranches (see page 3).
The deal's Class A piece was broken into five tranches, all rated triple-A by Standard and Poor's Ratings Service. The $115.9 million 5.5-year tranche priced at 30 basis points over swaps. The $299 million, 8.79-year piece came in at 39 basis points over swaps. A $55.5 million two-year piece fetched a spread of 32 basis points over swaps.
The triple-A to double-A tranches priced "right on the screws" of premarketing spreads, sources said, though pricing was slightly wider than anticipated for the single-As.
"But those are relatively small classes, so if you have to give up a beep' or two, so be it," said one MBS player familiar with the deal.
The loans for the collateral pool were assembled last year, and the B-piece portion was sold at that time, sources said. However, BofA's upcoming deal will contain more recently issued loans.