Two commercial mortgage backed securities conduits, one offered by JP Morgan and another by Deutsche Bank, Cantor Fitzgerald and UBS, priced this week at wider spreads than recent deals.
According to an offering document, JP Morgan priced its JPMCC 2013-C13 super-senior 10-yr weighted average life, A-4 notes at 122 basis points over Swaps, 2 basis points wide to the previous deal, JPMCC 2013- LC11, issued in May.
The 9.91-year, A-S class priced at 165 basis points, 15 basis points wider than the previous deal.
Pricing for the Deutsche Bank, Cantor Fitzgerald and UBS conduit deal also came in wide of levels seen in the issuer’s May deal. Dealers priced the 10-yr, super-senior class from COMM 2013-CCRE9 at 128 basis points, 6 basis points wide of the COMM 2013-CCRE8.
The 9.95-year A-M class sold at 170 basis points, 5 basis points wide of where those notes sold in the previous deal, according to Standard & Poor’s.
Spreads are expected to continue to widen, which will raise borrowing costs and lead to lower issuance for the rest of this year, said S&P.