The 35 basis points over swaps print on GMAC Commercial Mortgage's May 14 conduit pricing was a record level that came at a time of reduced yield in the market for investors to choose. To add to that, secondary market activity has dropped off precisely at a time when holders of CMBS paper might want to take advantage of these levels in order to book some profits.

But it is the slow pace of new issuance that might cause a holdback by investors at this point. There was another conduit that priced last week (LB-UBS 2003-C3) and one currently being marketed (MSDW 2003-IQ4), but this is a dramatic dropoff in supply, versus the volumes seen in the first quarter.

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