Royal Bank of Scotland (RBS) and Wells Fargo priced their $1.3 billion CMBS this week. The transaction's triple-A, A4 tranche priced tighter than the first two deals that kick-started CMBS issuance.

Last week, Deutsche Bank and UBS priced their CMBS's largest tranche priced at 3.51% over swaps, according to a Wall Street Journal report. Morgan Stanley and Bank of America also priced their $597.15 million triple-A tranche at 115 basis points over swaps, yielding 3.65%.

Barclays Capital data showed that the triple-A, A4 tranche priced at 100 basis points over swaps. The shorter dated triple-A tranches at 115 basis points over swaps and 120 basis points over swaps, which analysts said reflected the inverted curve and strong investor demand for duration.

However, the triple-B minus tranche priced at 205 basis points over swaps, tighter than the prior deals this year and inside the initial price talk. The tightening at the triple-B minus level, analysts said, reflects "increasing market optimism and investors’ interest in relatively low leverage."

Meanwhile, the JPMorgan Securities-led, $1.5 billion JPMorgan Chase Commercial Mortgage Securities Corp. 2011-C3 (JPMCC 2011-C3) is currently marketing.

According to a Fitch Ratings presale report, the certificates represent the beneficial interest in a pool of 45 commercial mortgages backed by 109 properties.The rating agency considered the deal's low leverage. Although the leverage exceeds that in Fitch-rated, fixed-rate deals in 2010, it is below leverage in those Fitch expects to rate in 2011 that are now in the market. The presale stated that the largest loan represents 14.4% of the pool; the largest three loans, 32.0%; the largest five loans, 45.7%; and the largest 10 loans, 65.2%.

Futher, preliminary details on the CMBS are availble via the link below from the ASR Scorecards database.

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