July could be one of the busiest months on record. However, given that the month has so far been short on execution, there are expectations that many transactions slated for this month will spill over to August.
Two conduits were launched last Thursday : the $1.38 billion Lehman Brothers/UBS Warburg 2001C3 and the $1 billion Morgan Stanley 2001-TOP3.
As of press time, for the Lehman /UBS deal talk on the 5.8 year triple-A class had widened from 42 basis points over swaps to 43-44 basis points over, and from 45 basis points over swaps to 46-47 basis points on the 9.7 year triple-A class.
For the Morgan Stanley deal, talk was 42 basis points over swaps on the 5.7 year triple-A tranche and 46 basis points over on the 9.7 year triple A class.
In addition, guidance was made available last Thursday on the $996 million JPMorgan 2001-CIBC2 deal. The triple-A 6.9 year piece was set at 44 basis points over swaps while the triple-A 9.7 year class was set at 46 basis points over. Meanwhile the Greenwich/Salomon Smith Barney transaction was gearing up for pricing this week.
Last Wednesday, IFR Mortgage said that the effect on market spreads as these issues come to market will be somewhat detrimental, but the degree of damage is debatable. Previous expectations put 10-year spreads into the low 50s as the deals price, but with talk of renewed dealer demand, that has been set down to the high 40s.
Meanwhile, in Canada, TD Bank's C$240 million Solar Trust deal, with offered certificates amounting to C$215 million, will be shown to investors starting this week.
One-on-ones will start on Monday in Western Canada. Roadshows will be held on Wednesday in Toronto and Thursday in Montreal. The deal is expected to price at the end of the month.