The CMBS market rallied for a second straight day. The sector was boosted by rising equity markets and word that new CMBS deals in September are being well received by investors, according to Trepp.
Morgan Stanley and Bank of America sold the top-rated 10-year portion of their $1.5 billion CMBS at 185 basis points over the benchmark swap rate yesterday. This happened after the banks marketed the debt earlier at as much as 215 basis points, according to a Bloomberg report.
Overall, spreads on legacy super seniors narrowed about five basis points. The benchmark GS Mortgage Securities Trust 2007-GG10 A4 bond finished five basis points tighter – ending the day at 320 basis points over swaps, according to Trepp figures.
"With U.S. stock futures looking at a very strong opening, the CMBS market will try to pull off a hat trick on Thursday," Trepp analysts said.