Previously forsaken CMBS issues now chased by investors:

08/6/2009 |

The commercial mortgage data service Trepp LLC reported a surge of investor interest in AAA-rated CMBS issues, with a rally narrowing spreads by 100 to 150 basis points. "The pricing is tightening up because people see there's an opportunity for doing a profitable trade by buying the bonds, and then securing financing through the Federal Reserve's TALF loan facility," said Tom Fink, a senior vice president at Trepp. "That should provide a fairly stable underpinning for the five-year spread at least through the end of the year, which is how long the program is currently scheduled to last."

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