The September calendar has a significant number of deals on it, and this is having an impact on spreads. Most recently, the BSCMST 2003-PWR2 deal, led by Bear Stearns, Merrill Lynch and Wells Fargo priced on Wednesday, with triple-As 10-years coming at 40 basis points over Swaps, some of the widest levels seen since April. Behind that, Credit Suisse First Boston printed a $1.3 billion conduit at the same levels on Thursday.

Spreads are about two basis points wider over the last month or so, at least in the secondary market. The Morgan Stanley TOP-11 deal that came at 33 basis points on August 7 is now trading at 35 basis points. This, however, shows a disconnect between primary and secondary spreads. The five basis point concession in new paper provides a buying opportunity, says Merrill's Roger Lehman, though the sizable pipeline this month will keep spreads from moving tighter

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