Trade Matrix: Citigroup -- CMBS

May 02, 2003, 12:00 a.m. EDT 1 Min Read

Floating-rate triple-A CMBSs are now cheap relative to credit cards, but a heavy 1Q pipeline will likely stop them from tightening until May. In fixed-rate triple-A CMBS, leaves recommendation at neutral as triple-A spreads remain fair. In mezzanine investment-grade classes, double-As and single-As now appear historically rich. But triple-Bs have sold off and triple-Bs are 5bp cheap. Support and WAC IOs are cheap to fair value. Recommends IOs for the carry. At recent levels, PAC-like IOs appear fair to five-year triple-A CMBSs, but should tighten as the market starts comparing the sector to similar duration debt. Seasoned premium-dollar CMBSs are now cheap.

For reprint and licensing requests for this article, click here.

TRENDING

Treasurys

Key US bond metric trades near four-year high after jobs data

The extra yield investors demand to hold 10-year notes compared with their two-year counterparts hit 73.7 basis points this week, just shy of the 2022 high touched in April.

By Alice Atkins and David Finnerty

February 6
Artificial intelligence

Fed's Jefferson wary of inflationary pressure from AI

Federal Reserve Vice Chair Philip Jefferson said in a speech Friday that long-term productivity gains brought on by artificial intelligence could compel the central bank to maintain higher rates to keep prices stable.

By John Heltman

February 6
Securitization

PK ALIFT raises $900 million from aviation contracts

The highly diversified pool mix consists of 29 different aviation asset types, with a third being new and emerging technology aircraft, and 45.7% are current technology aircraft.

By Donna M. Mitchell

February 6

MORE FROM ASSET SECURITIZATION REPORT

Artificial intelligence

Fed's Jefferson wary of inflationary pressure from AI

Federal Reserve Vice Chair Philip Jefferson said in a speech Friday that long-term productivity gains brought on by artificial intelligence could compel the central bank to maintain higher rates to keep prices stable.

By John Heltman

February 6
Securitization

PK ALIFT raises $900 million from aviation contracts

The highly diversified pool mix consists of 29 different aviation asset types, with a third being new and emerging technology aircraft, and 45.7% are current technology aircraft.

By Donna M. Mitchell

February 6
Regulation and compliance

FHFA goes ahead with repeal of Biden fair lending rule

The secondary market regulator will formally publish its own rule on Feb. 6, after a comment period and without making changes to what it proposed in July.

By Brad Finkelstein

February 6
Consumer lending

Avant Loans raises $200 million from unsecured consumer loan pool

The deal will not make any principal payments during the revolving period unless it needs the cashflow to maintain the required overcollateralization amount.

By Donna M. Mitchell

February 5
Credit scores

CFPB implements new requirements for complaints on its portal

Bowing to industry pressure, the Consumer Financial Protection Bureau is warning consumers with notices on its complaint portal not to file disputes about inaccurate information on credit reports, among other changes.

By Kate Berry

February 5
HELOANs

Hometap appoints Silverman and Berg to senior exec roles

The financial technology firm says the hires reflect its continued investment in a solid growth, as it develops its finance offerings, and engages with industry leaders and regulators.

By Donna M. Mitchell

February 5