The much anticipated cadence of commercial mortgage deals has come to pass of late, with two already wrapped up in March and two more likely coming the week of March 18. The next conduit to price will be the Morgan Stanley conduit (MSDWC 2002-HQ). Guidance is out and is kind to the deal with the 9.36-year WAL tranch tagged in the 47 basis points area over the swaps curve and the 5.74-year WAL in the 43 basis points area.
The 10-year tranche is very much in-line with where recent deals have priced, but the 5s are a basis point through where the Bear Stearns TOP-6 issue came on March 8th. The Morgan Stanley issue consists of loans from MSDWC and John Hancock, and is heavily concentrated in retail (38.9%) and office (28.7%) property types.