Most commercial mortgage-backed securities players reported last week to be a very quiet, with not much going on in the way of secondary trading, and no primary deal being launched. The highlight of the week, of course, was the pricing of the UBS Warburg/Lehman Brothers conduit for $1.37 billion (see market story, p. 4), which seemed to price "very appropriately," sources said, considering the state of the swap markets and the increasing demand for 10-year paper.

"The Lehman deal priced right where it should have for the 10-year bond," said the head of a CMBS trading desk. "I think that was the appropriate pricing, and I think the five-year priced a little cheaper than you would have expected it to."

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