Leading into the barrage of CMBS deals that were expected this month, three deals hit in rapid-fire succession on Thursday, Feb. 15 and most priced at or inside of guidance as CMBS spreads barely budged on this first real wave of new production this month. Last week, the sizable GCCFC 2007-GG9 transaction priced inside of those levels and spreads were even tighter on the deal, with the investment-grade curve flattening once again.
The demand was more than sufficient to keep these transactions well oversubscribed, with many investors left wanting more paper as a result. The prior dearth of bonds had left a hunger in buyers that is still reflected in the clearing levels on new deals. No pipeline glut was apparent while the market was waiting for the remaining half dozen deals slated to price for February. Spreads remained strong last week, heading into the end of the month. The pace of issuance seemed well timed, unlike in the past where buyers might have been slightly full coming into issuance-heavy months.