The CMBS pipeline is a pretty tall order for the rest of the year, especially considering there are only 16 full trading days left before year-end. The calendar is flush with conduit issuance, six deals in all, totaling over $6 billion. This represents nearly 17% of the total 2002 conduit issuance, according to Merrill Lynch & Co. researchers.

As of press time last Thursday, four conduits were in the market. Morgan Stanley is leading a syndicate including Lehman Brothers and Merrill Lynch in a $900 million offering (MSDW 2002-IQ3) that was expected to price last Thursday. Guidance for the issue was at 46 basis points over for the 5-year triple-As and 49 basis points over for the 10s. The 10s were talked a basis point through current secondary spreads.

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