Spreads followed a common pattern in the lower investment grade stack as double-As and lower-rated securities widened out two to 18 basis points in triple-B minus classes in the week ending April 27. Triple-As were firmer on the week, as intermediate and longer senior classes were one basis point tighter after the previous week's price guidance. Colored by mostly negative sentiment, three deals priced while one deal was announced, kicking off activity for May. New supply for this month is expected to be almost $30 billion.

The end of April saw the secondary market with less bid-list supply and mainly triple-A paper getting sold off by money managers. In the agency markets, issuance was quiet and secondary bid lists were manageable. In the CMBX space, CMBX.3 rolled into market on April 25 and levels are wider than in the previous index (CMBX.2). The most recent index has appeared to gain notoriety as the barometer of all things that are good and bad on the surface of CMBS spreads. While each index has 25 benchmark deals in mind for a given stated issuance period, the most recent roll soaks up all the latest "tape-bombs," market players say.

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