Continues to hold that investors are not being sufficiently compensated for venturing out the IG credit curve. At +127 bps, the curve is near its 2001 average of +132. However, in 2001, the CMBS delinquency rate was closer to 1.0% than 2.0% and downgrades comprised 9% of rating agency activity versus 44% in 2002. Recognizing that some investors simply need the yield found out the curve, the A to BBB trade looks most attractive with a spread pickup of 69 bps vs. a 6-mos. average of 62.

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