There are no signs of a slowdown in Europe, and the forward calendar is bulking up in excess of E10 billion (US$11.6 billion) moving into the new quarter. There are still a number of RMBS issues yet to price, but the market is warming up to a couple of CMBS deals expected this month.
According to market sources, Lehman Brothers began marketing a GBP310 million (US$515 million) CMBS deal through its Windmere conduit. The deal is backed by seven loans on 28 properties with 181 tenants and will include two triple-A rated pieces divided into a GBP110 million (US$183 million) and a US$210 million piece. It also includes a GBP28.7 million (US$47.9 million) double-A piece, a GBP20.1 million (US$33.5 million) single-A piece and a GBP12.5 million (US$20.8 million) triple-B piece. Market players also anticipate a E1.5 billion (US$1.7 billion) pan-European synthetic CMBS transaction from Eurohypo in the coming days.