According to ASR sister publication National Mortgage News, reports have surfaced regarding two top 10 ranked banks that are working on Jumbo deals for later in the year.
The optimistic turn for the market comes just after Redwood Trust announced its latest RMBS, the $415 million Sequoia Mortgage Trust 2012-I.
Another promising development for the space is the anticipated pricing of the market’s first conduit deal of 2012.
According to a Bloomberg report the $1.154bn Goldman Sachs and Citigroup led deal, GSMS 2012-GC6, will likely see its duper piece – the highest rated tranche on offer --price at S+120.
Bank of America Merrill Lynch analysts said in a recent report that the duper tranche on the last transaction to price, WBRBS 2011-C5, came in at S+145.
“On surface, the GSMS 2012-GC6 is smaller-than-average CMBS 3.0 deals and the WAC is around 50 basis points higher than average,” BofA Merrill analysts said in a report.
The analysts also noted that the LTV at 43.4% is lower than the last CMBS, which had an LTV of 48% but the overall LTV is higher than average 63.3% vs. 61%.
“Also the new transaction has roughly 3x more multifamily and manufactured housing loans than is typical for a CMBS 3.0 transaction,” they said.
The Goldman/Citi bonds rated triple-B minus in the deal’s capital structure are being offered privately, according to the Bloomberg report and can pay a spread of 700 basis points more than the benchmark.