Trade Matrix: JP Morgan -- CMBS

May 16, 2003, 12:00 a.m. EDT 1 Min Read

This week the firm highlights the relationship between BBB CMBS spreads and unsecured REIT spreads. First, analysts recommend a "buy BBB CMBS/sell REIT debt" trade, which offers more spread pickup than at any point in the past three and a half years. Additionally, as it has argued for some time, the BBB/REIT relationship has been an important confirming signal for the down-in-quality trade in CMBS. JPMorgan has been recommending down-in-quality trades in CMBS since early December.

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

TRENDING

Originations

Mortgage rates move lower for first time in four weeks

Even with the four basis-point drop, the 30-year fixed rate mortgage remained at levels last seen in February as the Spring homebuying season reaches its climax.

By Brad Finkelstein

2h ago
CMBS

Jason Brooks leaves Janus for Forum Investment Group

At the Denver firm, Brooks will expand its capabilities in real estate lending and structured finance.

By Donna M. Mitchell

3h ago
RMBS

Home remodeling bond sales surge as Americans avoid moving

TPG Angelo Gordon estimates there's a $2 trillion market for home equity products. Thanks to tighter lending standards, the debt also appears safer than in the 2008 financial crisis.

By Scott Carpenter

6h ago

MORE FROM ASSET SECURITIZATION REPORT

Originations

Mortgage rates move lower for first time in four weeks

Even with the four basis-point drop, the 30-year fixed rate mortgage remained at levels last seen in February as the Spring homebuying season reaches its climax.

By Brad Finkelstein

2h ago
CMBS

Jason Brooks leaves Janus for Forum Investment Group

At the Denver firm, Brooks will expand its capabilities in real estate lending and structured finance.

By Donna M. Mitchell

3h ago
ABS

Kentucky Power raises $477.7 million from utility recovery bonds

Non-residential customers accounted for about 56.4% of Kentucky Power's revenue, a potential credit risk because it is closely tied to business cycles.

By Donna M. Mitchell

June 4
Trump administration

Bowman confirmed as top regulator at Fed

The Senate voted to confirm Federal Reserve Gov. Michelle Bowman's nomination to be the vice chair for supervision at the central bank in a 48-46 party-line vote.

By Claire Williams

June 4
ABS

Willis Engine Structured Trust raises $596 million in aircraft ABS

Willis Engine Structured Trust, VIII, sells its fixed-rate notes through two tranches, all with a legal final maturity date of June 2050.

By Donna M. Mitchell

June 4
Treasury bonds

As Treasury market is poised to grow, fragilities mount

The Treasury market experienced unexpected volatility in April after President Trump announced sweeping tariffs, but recovered after the moves were delayed. Some see that as proof of resilience in the market, but others say it highlights vulnerabilities.

By Kyle Campbell

June 4