Spreads on new issue CMBS currently marketing continued to tighten this week but levels remain well off those reached earlier this year.
The Deutsche Bank/Cantor conduit deal, COMM 2013-CCRE 10 priced the 9.95-year, triple-A notes at 100 basis points over Swaps on Thursday.
Similar classes from deals that priced two weeks ago sold at 115 to 120 basis points and 150 to 160 basis points. Deutsche Bank/Cantor priced the 10-year, triple-A bond on their last conduit deal, COMM 2013-CCRE9 at the beginning of July, at 128 basis points over swaps.
But as recently as May the 10-year note from COMM 2013-CCRE 8 priced at 94 basis points.
COMM 2013-CCRE10 priced the 2.71-year, triple-A notes at 55 basis points; the 4.94-year triple-A notes priced at 70 basis points; and the 7.45-year, A-SB notes priced at 95 basis points.
Mezzanine new issue paper also benefited from a calmer CMBS market in July. According to a Trepp report, new issue double-A paper was being quoted about 20 basis points tighter at the end of July than at the end of June; single-A paper was being shopped at about 15 basis points inside end of June levels; and triple-B paper was about 20 basis points tighter.
The Bank of America Merrill Lynch/Morgan Stanley CMBS conduit deal priced its ‘AA-’ / ‘Aa3’/ ‘AA+’, 9.92-year, class B notes at 200 basis points and the class C, ‘A-’/ ‘A3’/ ‘A+’ rated notes priced at 260 basis points.
The deal priced the 2.72-year, triple-A notes at 57 basis points; the 4.98-year triple-A’s priced at 80 basis points; the 7.45-year, triple-A’s priced at 100 basis points; the 9.87-year, triple-A notes priced at 105 basis points; and the 9.92-year triple-A notes priced at 135 basis points.