Morgan Stanley and Bank of America yesterday began marketing the second CMBS offering so far in 201l, according to a Dow Jones report.
The new deal comes after Deutsche Bank and UBS' $2.2 billion was announced amid what is shaping up to be a healthy CMBS calendar for 2011.
The Morgan Stanley/BofA deal offers $1.548 billion CMBS backed by 37 loans on 79 properties.
The bond has eight parts. The top four of the deal are rated triple-A. Fitch Ratings and Standard & Poor's have rated the deal.
Spreads ranging from 16-18 basis points over the three-month, interpolated yield curve on the P1 (Moody's) and F1+ (Fitch) notes, to 160 to 170 over the benchmark on the class D notes.
Broken down by product type, the agency's NJCLASS Standard Fixed product should account for a large majority of the loans, 75.4%. NJCLASS Consolidation will account for the next-largest group, 14.1%.
The notes will price against Treasurys, with spreads expected to fall between 85 and 90 basis points over the benchmark.
The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
Bluegreen Vacation originated the loans and Fitch expressed confidence in its record of good performance as servicer.
Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
