While the talk surrounding the calendar is about the number of conduits on the list, market demand has not only kept up, it continues to draw spreads tighter. Triple-As are 2 bps narrower on the week, and only tighten down the credit spectrum due to ongoing CDO demand. The next couple of weeks will be the most telling, however, as four conduits make the rounds.
The first deal likely to price is a joint Salomon Smith Barney/ Greenwich Capital transaction dubbed SBM7 2001-C2. Pre-launch talk has the 10-year class at +57 basis points, two basis points wide of the recent First Union deal that came on December 6. The most obvious difference between the issues, and mitigation for the spread concession, is the meager 12.6% multifamily collateral in SSB's issue compared to over 34% for FUNB. This highlights the well-known tale of agency interest in recent conduits with over 30% multifamily weighting.