In the past two weeks, CMBS spreads gapped out further, as exemplified by the new guidance on the WBCMT deal, which was met with diminished demand.

The recent UBS announcement that it was folding its hedge fund unit Dillon Read Capital (DRC) into its investment banking business. gave many market players more to fret about. Officials from the company said that operating a proprietary trading platform outside the investment bank while managing client money had become too complex and expensive. DRC, which managed over $1 billion in client assets, was seen as a major force in sponsorship of CMBS new issuance, regularly taking down several hundred million in triple-A paper.

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