Deutsche Bank priced a re-REMIC of AAA-rated CMBS, today according to market sources.
The $405 million deal Deutsche Bank re-remic trust 2013-EZ3, priced the DBRS and Moody’s Investors Service rated, triple-A notes, with a weighted average life of 2.44-years at 95 basis points over Swaps.
DBRR 2013-EZ3 is a static cash pooled Re-REMIC that is collateralized by 23 “long-pay” senior and super –senior CMBS certificated from deals issued between 2004 and 2007, according to a Moody’s presale report on the deal. Moody’s also refers to the CMBS Re-Remic structure as a commercial real estate CDO.
Standard & Poor’s did not rate the deal but said today that the return of CRE CDOs “is a leading indicator of increased CMBS underwriting risk.”
Issuance so far this year has been limited. In an Aug. 12th report, Moody's said that only one new CMBS CDO called CSMC Funding closed in the second quarter, the second CRE repack transaction for 2013.
CRE CDO issuance peaked in 2006-2007 at around $40 billion per year, according to S&P.