One week after the Warburg Dillon Read/Lehman Brothers Inc. $1.4 billion conduit deal was shelved, commercial mortgage-backed securities players seemed to come back to life last week, with spreads tightening on both five-year and ten-year paper.

"People are coming out of the woodwork," said Gail Lee, director of CMBS research at Credit Suisse First Boston. "The reason for that deal being pulled doesn't affect the way some of the other vintage issues will trade. The market was waiting for that deal to happen. When it didn't occur, people who were sitting on the sidelines while things are getting cheaper and cheaper now think this is a good time to get in new deal or not. You could point to some of the secondary market as taking the lead in re-establishing a market again."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.