CMBS spreads were wider as guidance was released on the two deals that were in the market last week and that were slated to price by month end. The Lehman Brothers-UBS deal launched and priced last Tuesday.
Triple-B and triple-B-minus classes were hardest hit by Moody's Investors Service's recent announcement that it was increasing credit enhancement levels for CMBS deals. Supply was not an overriding factor as credit support and deal composition took center stage. The subprime fallout - particularly via the ABX space - has actually lent a behind-the-scenes hand here, waking up rating agencies to act and present themselves as being more vigorous and proactive.