Bookrunner Morgan Stanley and joint-lead Wachovia Securities printed a cashflow static pool CMBS CDO for TIAA CREF last Tuesday, setting a benchmark as the most expensive (from a buyside perspective) structured finance CDO print overall, and the tightest single-A and triple-B pricings seen on a CDO in 2002. According to market participants, this indicates a continued strong bid for CMBS collateral in whatever forms available, as long as there's diversity, a good manager, and yield.

The triple-B tranche on TIAA's Real Estate CDO Series 2002-1, a tranche that was recently considered the most difficult class of debt to place, was reportedly five times oversold as early as May 3 (dealers are reporting strong demand for cashflow CLO triple-B bonds as well from name brand managers).

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