The second conduit deal for this year, the $1 billion COMM 2012-LC4 from Deutsche Bank, priced tight to initial guidance amid signs of strong demand.

The junior triple-A notes and below all tightened considerably, JPMorgan Securities analysts noted in a report today.

Last week, the largest piece of the privately placed conduit was reportedly being marketed with an initial guidance of 115 basis points over the interest-rate swap benchmark, according to a Bloomberg report.

"We believe the rally in new-issue credit bonds will continue," analysts said in the report.

Meanwhile, investors will soon get another chance to buy more CMBS. A Nomura Securities report indicated that Morgan Stanley and Bank of America will be next to launch a $1.2 billion conduit CMBS deal called MSC 2012-C4.

 

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