With little going on in the CMBS markets of late, the focus has been clearly targeted on the supply line heading ito the last third of 2001 as well as some light profit taking in the meantime. So far, the last four months are shaping up to be rather busy, if all the posted deals come to market. What has been especially noted of the global calendar is the number of non-conduit issues, totaling $11.20 billion, combined with a nearly equal $11.25 billion of more traditional conduit securitizations. Salomon Smith Barney points out that the planned conduit issuance is slightly more than what was seen over the same period last year, but that the "other" issuance is the real volume driver.
This brings up some potential opportunities, says SSB. Single-asset issues in the latter half of the year will not carry any "trophy" properties, and will likely price wider than previous deals. With lesser known names as collateral, however, rating agencies are likely to provide extra scrutiny and provide better credit protection, adding a further benefit to holding this paper. Lastly, the majority of the issues are floating-rate notes, which should attract good demand since floating-rate conduit issuance has been low this year.